The US economy has shown a sluggish rate of growth his year.
This can be attributed to many factors.
One of them is the rise of imports by this country.
The reduced spending by the US citizens can also be held accountable for such a slow growth rate of this economy.
According to the commerce department of the country, this was the increase in the GDP for the period from January to March.
The government had expected this rate of growth to be 3 percent.
It had also released estimates of this rate of growth.
In the last, quarter of last year the rate of growth of 5.
6 percent.
The latest revision had little impact on the financial markets.
The Dow Jones industrial average rose about 10 points in the first hour of trading.
Although the government has introduced some reforms, they did not have much of an impact on the US economy.
The Dow Jones-trading index just rise almost 10 points in the initial trading hours.
The factories are producing steel cars and appliances as before.
However, they are not for the consumer.
Instead, they are for the companies that had experienced a low rate of production due to recession.
They are now increasing their inventories to meet with the level of increased sales.
The government has commented that this rate of growth was normal had the US economy been not facing a recession.
However, since it was recovering from a huge recession, it was not the right growth rate.
The economy had earlier faced recession in early 1980s, which were immediately succeeded by rates of growth as high as 7 to nine percent.
The recession is going to have serious side effects because European debt crisis has also emerged because of it, which has produced a lower spending.