Exports behind in the US during first quarter

The economic outlook is bleak as consumer spending, which accounts for 75 percent of economic activity, grew at is slowest pace since 2001.

However the pace of growth in the first quarter was greater than original forecasts as exports rose as gross domestic product expanded at an annual pace of 0.9 percent which is up from the 0.6 percent projected in April.

Second estimates are now in the pipeline as reports form both the Commerce Department’s and Labour Department are expected later today.

In the meantime, purchases are predicted to slow further as Americans are balancing the rise in the cost of fuel with those of rising food costs amid fewer jobs and job security as well as declining property prices.

Car sales are always seen as a strong indicator and they are down to 14.4 million annually which is the lowest level since 1998.

The first quarter has had repercussions across the globe as the slowdown in the United States has had negative effects causing a stronger peso, which in turn slowed the growth of the Philippine economy in the first quarter to 5.2 percent.

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