Get a demo Do I subscribe? News sign-up

US Economic Recovery Still Wobbly, Say Analysts

News, 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