WASHINGTON (AP) -- The economy showed even more pep than initially thought in the first quarter, zipping ahead at a 5.3 percent pace. But a less energetic housing market and high energy prices are now taking out some of the oomph.
"I think we sort of had the last hurrah for the economy for a while," said Nariman Behravesh, chief economist at Global Insight. "We aren't going to see this kind of growth for a bit. We will see softening in the economy, but there's no reason to be pessimistic."
The figure released by the Commerce Department Thursday showed gross domestic product during the January-to-March quarter surpassing the 4.8 percent annual rate estimated a month ago. It marked the strongest growth spurt in 2 1/2 years. The upgrade mostly reflected stronger U.S. exports and better inventory building by businesses.
GDP, which measures the value of all goods and services produced within the United States, totaled $11.39 trillion in the first quarter when annualized and adjusted for inflation.
President Bush, coping with his lowest job-approval ratings, said the GDP report provides evidence that "America's economy is on the fast track." |