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Economy Grows at 3.2% in First Quarter

Economy grows at 3.2% rate in first quarter

Washington Post Staff Writer
Friday, April 30, 2010; 11:51 AM

The U.S. economy grew at a 3.2 percent annual rate in the first three months of the year, evidence that the economic recovery continues to plug along but that growth is not accelerating in a way that would bring down joblessness rapidly.

The first-quarter gain in gross domestic product represents a deceleration from the 5.6 percent pace of growth in the final months of 2009, and is a bit below the 3.5 percent growth analysts were forecasting.

The growth in gross domestic product, the broadest measure of economic activity, was driven by a 3.6 percent rise in personal consumption expenditures. That is the largest component of GDP and suggests that American consumers are gradually coming out of their shells and returning to stores following the recession that probably ended last year.

"We're heading in the right direction. We're moving forward. Our economy is stronger," President Obama said during an appearance at the White House with workers and business leaders. However, he acknowledged that the nation's grudging recovery has not reached the point where all the damage of the downturn has been repaired.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/30/AR2010043001041.html?hpid=topnews



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