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Fundranker Blog—Economy Continues to Grow

Economy Continues to Grow

The U.S. economy expanded for the third consecutive quarter in the first quarter of 2010. Gross domestic product grew 3.2%. In the third and fourth quarters of 2009, GDP grew 2.2% and 5.6%.

Consumer spending increased significantly, growing at an annual rate of 3.6%, the strongest growth in three years. Consumer spending grew at an annual rate of only 1.6% last quarter.

Businesses must be seeing a more rosy economic future, as well. Their purchases of capital goods increased 13.4% in the first quarter, adding to a 19% increase last quarter. Even more telling, for the first time in two years, businesses increased their goods inventories during the first quarter.

Jobless claims have fallen for two consecutive weeks. Although the recovery has been labeled as “jobless” so far, perhaps this situation is beginning to change.

Posted 5/4/10 9:32am ET in Economy