U.S. economy grew 1% in Q1
Rising exports helped the U.S. economy post first-quarter performance that was slightly-better than initially forecast.
The U.S. Commerce Department said Thursday that economic growth for the January-March quarter was one per cent — just ahead of the 0.9 per cent initial estimate the U.S. government provided one month ago.
The first-quarter growth was also better than the weak 0.6 per cent increase seen during the fourth quarter of 2007.
"Although the economy managed to avoid a decline at the start of the year, growth was weak," said Royal Bank assistant chief economist Paul Ferley.
"Our forecast assumes that this will continue to be the case in the second quarter, with the economy managing to eke out another small increase with modest gains in consumer spending offsetting the ongoing restraint from a declining housing market. A continuing weak economy will keep the [Federal Reserver] cautious," Ferley said.
On Wednesday, the Federal Reserve left a key interest rate unchanged as it shifted its focus from economic growth to inflation control.
April gross domestic product figures for Canada are due to be released on June 30.
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