.S. consumers spent less than previous thought during the first quarter of 2010, according to new figures released by the government, which forced the nation's first quarter gross domestic product (GDP) growth rate lower. The government revised GDP growth to only 2.7 percent for the January through March quarter, down from an advanced estimate of 3.2 percent in April, and the final reading was much slower than a 5.6 percent growth rate for fourth quarter of 2009. Consumer spending is often cited as accounting for 60 percent to 70 percent of the GDP.
Stuart Hoffman, chief economist at PNC Financial Services, wrote that the revision reflects a "halfhearted economic advance" and he predicted similar growth rates for all of 2010.
Paul Dales, U.S. economist with Capital Economics, told the Associated Press that the U.S. is experiencing "the weakest and longest economic recovery" process post-WWII. Without stronger, long-term growth the job sector will experience little if any change, which is a leading concern for U.S. consumers.
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