Economic growth in US got back into some speed lately in the first quarter, but it was not as expected. This elevated tensions as an already weakening economy is showing positive signals to cope-up with deep government spending cuts and higher taxes.
The Gross domestic product figures expanded at a 2.5 percent annual rate, said the Commerce Department on Friday. The growth indices almost stalled at 0.4 percent in the fourth quarter of last financial year. However, the economists were expecting a 3.0 percent growth rate this quarter.
“It wasn’t the bang-up start to the year we had hoped for, and the signals from March suggested that we will only decelerate from here,” said Avery Shenfeld, Chief Economist at CIBC World Markets Economics in Toronto.