US Economic Recovery Still Wobbly, Say Analysts

29 June 2004

The US economy is still looking unpredictable, according to the Commerce Department.

First quarter figures reveal gross domestic product rose 3.9% -- below the original 4.4% forecast. Consumer spending which accounts for two-thirds of GDP rose 3.8%. Inflation, excluding food and energy, was up 2% against original annual estimates of 1.7%.

Business spending was 5.3%, down from previous estimates of 5.8%. Businesses' inventories increased by $25.5 billion (€21bn; £14bn), down from earlier estimates of $28.2bn. First quarter exports were up 7.5% compared with imports which increased 10.4% .

Elsewhere there was brighter news. The National Association of Realtors reported a 2.6% rise in house sales during May to 6.8 million, compared to 6.3m for April. The median price of a US home now stands at $183,600 -- a 10.3% increase on the previous figure.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff