US GDP growth for last quarter revised down to 1.9

The US GDP growth for the last quarter has been revised down to 1.9% compared to previous estimate of 2.2% due to lower government as well as consumer spending. This is much lower compared to previous GDP growth of 3% in the last quarter of previous year 2011.

The main reasons behind this lower revision were lower consumer spending, lower government spending than earlier expectations. Consumer spending which accounts for nearly 70% in US economic activity grew by 2.7% in the last quarter instead of previously reported growth of 2.9%. Government spending was dropped by steep 3.9% instead of earlier reported drop of 3.0%.

US GDP growth for the current quarter is estimated to be around 2.5%. US economic recovery has been very slow after the last financial crisis and it will take some more quarters to come back to proper growth path.