The world's largest economy shrank 5.5 per cent in the first quarter of 2009, much less than expected amid rising hopes of an early economic turn around.
Grappling with an unprecedented recession in over 80 years, the world's largest economy was estimated to contract 5.7 per cent in the first three months of this year.
The final estimates released by the Bureau of Economic Analysis (BEA) showed that the nation's real GDP -- the output of goods and services produced by labour and property located in the US -- shrank at an annual rate of 5.5 per cent in the first quarter.
These are the final official estimates. Earlier, the BEA projected the economy to contract 5.7 per cent.
"The GDP estimates released today are based on more complete source data than were available for the preliminary estimates issued last month. In the preliminary estimates, the decrease in real GDP was 5.7 per cent," the BEA said in a statement. In the 2008 fourth quarter, the economy shrank 6.3 per cent.
Among the main reasons for the fall in GDP are negative contributions from exports, equipment and software and private inventory investment, among others.
The negative contributions were partially offset by a positive contribution from personal consumption expenditures (PCE).
According to the BEA, the country's current-dollar GDP -- the market value of the nation's output of goods and services -- dropped 2.9 per cent or $103.1 billion, in the first quarter to a level of $14.09 trillion.
"In the fourth quarter, current-dollar GDP decreased 5.8 per cent, or $212.5 billion," it noted.
Yesterday, the US Federal Reserve said that economic contraction is slowing down even though the economy would continue to remain weak for some more time.
