GDP Report Shows Economy Continues to Grow at Rate of 3.2 Percent
April 30, 2010
(ChattahBox)–The latest Commerce Department’s report on the nation’s gross domestic product, provided some good news on Friday, showing a healthy expansion of 3.2 percent in the first quarter. Although the rate of growth fell below an expected rate of 3.4 percent, the expansion marks a positive trend, as the third-straight quarter showing growth in the economy.
Commerce Secretary Gary Locke, said “With a third-straight quarter of growth, it’s clear America’s economy is turning around.” “But Americans remain rightly focused on their personal financial situations and jobs…”
The positive report, as reported by Reuters, shows an increase in consumer spending and a positive outlook in business inventories:
“The economy expanded at a 3.2 percent annual rate in the first quarter as consumers increased spending at the fastest pace in three years, the strongest sign yet a sustainable recovery may be taking hold. While growth slowed from the fourth quarter’s rapid 5.6 percent pace and was a touch weaker than economists expected, the details of Friday’s report from the Commerce Department were fairly upbeat.” [...]
“The Commerce Department report showed that business inventories increased $31.1 billion in the first quarter, adding 1.57 percentage points to GDP growth, as firms restocked to meet rising demand. It was the first inventory increase since the first quarter of 2008.”
President Obama pointed to the positive signs in our economy, as good news, while also acknowledging more needs to be done to increase jobs. He called the report “an important milepost on the road to recovery.”