US. Economic Growth Slowing, Data Indicate: Fed Official Points to 2nd-0narter Fignres
The U.S. economy grewinthefirst three months of this'year at a faster rate than earlier estimated, but a senior Federal Reserve official said that since then growth ÛÏclearly is starting to slow down.Û</br></br>The Commerce Department yesterday raised its estimate of first-quarter growth to a 5.8 percent annual rateÛÓfile highest in more than a decadeÛÓfrom the 5.6 percent rate first calculated. Growth is measured by the change in the nationÛªs gross domestic productÛÓthe total value of goods and services producedÛÓ adjusted for inflation. The regularly scheduled revision was based on information not available when the first estimate was made last month.</br></br>Coming at a time of low unemployment, the unusually rapid growth sparked concerns that it could cause an increase in inflation. Even though there was no sign that had happened yet, Fed policymakers raised shortterm interest rates in March to cool off the economy a bit and keep inflation from worsening. At a subsequent meeting last week. Fed officials, believing that growth is tapering off, chose not to raise rates again.</br></br>William J. McDonough, president of the New York Federal Reserve Bank, told reporters in Toronto yesterday, ÛÏThe data for the second quarter thus far indicate that the economy clearly is starting to" slow down.Û</br></br>Meanwhile, in a separate report, the Commerce Department provided what analysts said is added evidence of that slowing. Sales of new homes fell in April, after rising 2 percent in March. The April figure was close to the selling pace of the final three months of last year..