U.S. gross domestic product grew at an annual rate of 2.5% in the first quarter of 2013, reflecting positive contributions from exports, residential investments and personal consumption expenditures, according to an early estimate from the government.
Personal income dropped 3.2% to $109.1 billion in the first quarter, compared to $262.3 billion in the fourth quarter of 2012, the U.S. Department of Commerce Bureau of Economic Analysis said.
“The economy had some bounce in the first quarter as GDP growth showed some acceleration. But the details are not as encouraging as the headline. The first quarter grew 2.5% after a modest 0.4 gain in the fourth quarter. Analysts forecast a 3.1% boost in the first quarter,” Econoday said.
They added, “Demand growth was very sluggish with weakest component being government purchases while the bright spot was consumer spending. Final sales of domestic product increased 1.5% after rising 1.9% in the fourth quarter. Final sales to domestic producers (which exclude net exports) improved to a 1.9% boost, after a 1.5% gain in the fourth quarter.”