US economy grows 2.5% on buoyant consumer spending

April 27 – The US economy grew at an annual rate of 2.5% in the first three months of the year, helped by the strongest consumer spending figures in two years.

 

While the growth figure was lower than analysts' expectations, it was better than the 0.4% rate recorded in the final quarter of last year.

 

Consumer spending rose at an annualised rate of 3.2%, according to the Commerce Department data.

 

But government spending, especially on defence, fell at a rate of 4.1%. (BBC)