Economic Growth at 1.6%; Bad, But Better Than Thought

by pankaj kumar | August 27, 2010 at 05:33 am

52 views | 0 Recommendations | 0 comments

US economy surprize the analyst by reflecting 1.6% growth in GDP ,earlier analyst were expacting less than 1.5% as per revised status.Markets were poised for selloff however the GDP no is going to give upmove to the equity ,now the market will eye for fed chief speak today

U.S. economic growth slowed more sharply than initially thought in the second quarter, held back by the largest increase in imports in 26 years, a government report showed on Friday.

Gross domestic product expanded at a 1.6 percent annual rate, the Commerce Department said, instead of the 2.4 percent pace it had estimated last month.

However, the reading was a touch better than market expectations. Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, revised down to a 1.4 percent growth rate. The economy grew at a 3.7 percent pace in the first three months of the year