In the first quarter, the US economy declined by 2.9%

In the first quarter, the US economy declined by 2.9%

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US economy declined

Annual growth rate of the US economy declined by 2.9% in the first quarter, instead of 1%, as previously reported. This decline was the largest since 2009, when she went into decline Great Recession. Growth in consumer spending, the main source of U.S. economic activity, was cut from 3% to 1%, mainly due to the fact that Americans have reduced the costs of health care and other services. Initially, the government suggested that «Obamacare», health care reform and the protection of patients, initiated by President Barack Obama, will US economy declined by 2.9% in the first quarter of the year.

In fact, health spending fell by $ 6.4 billion, rather than to grow by $ 39.9 billion, as previously expected. Net exports also fell more than expected, thus reducing GDP for the first quarter. US economy declined in inventories was revised down from $ 51.6 billion to $ 45.9 billion These final sales of goods and services produced in the United States, have been adjusted downwards and showed a decline of 1.3% instead of 0.6% growth. Other indicators of GDP remained almost unchanged.

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