U.S. Economy Expanded at a 3.2% in First Quarter

The U.S. economy continued to grow in the first quarter. National output expanded at a seasonally adjusted annual rate of 3.2 percent last quarter, after growing 5.6 percent in the fourth quarter of 2009. This marked the third quarter in a row the economy showed strong economic growth. Economists are optimistic that the news may breed more confidence about the future turnaround.

Increased consumer spending played a significant role in the last quarter expansion. Consumer spending grew at 3.6 percent annual rate in the first part of the year, after growing at 1.6 percent annual rate in the previous three months.


The biggest contributors to consumer spending growth were purchases of durable goods like cars. Consumer spending makes up more than 70 percent of the total economy, and it usually drives growth during economic recoveries.

Although the growth, concern about the job situation has persisted as the unemployment rate has hovered around 10 percent for the last eight months. The most recently the unemployment was 9.7 percent in March.