Torrid U.S. Growth Slows to More Reasonable Pace
The initial Gross Domestic Product (GDP) report on first quarter economic growth in the United States will be released on Thursday. The report is expected to show that growth has moderated from the 4.4% pace we saw last year. At Economic-Watch, we expect to see growth during the first quarter of 3.2%. The recent slowdown in the economy should not be viewed with too much concern. So far in the business cycle, consumers have been the driving force behind strong growth by the way of tax cuts and a strong housing market. As the stimulus wears off, the business sector will increasingly be relied on to generate growth through new jobs and investment. With economic growth slowing and productivity leveling off, businesses will need to focus on revenue growth to improve profits.