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US economy posts 3.2% growth in first quarter on shrinking trade deficit

Fears of a recession were stoked by a brief inversion of the US Treasury yield curve last month

Reuters  |  Washington 

US economic growth accelerated in the first quarter, but the burst in growth was driven by a smaller trade deficit and the largest accumulation of unsold merchandise since 2015, temporary factors that are likely to reverse in the coming quarters. Gross domestic product increased at a 3.2 percent annualized rate in the first quarter, the Commerce Department said in its advance GDP report released on Friday. Growth was also boosted by an increase in government investment. But consumer and business spending slowed sharply, and investment in homebuilding contracted for a fifth straight ...

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First Published: Fri, April 26 2019. 20:47 IST