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GDP shrinks less than estimated, thanks to consumer spending

"Part of this weakness was likely the result of transitory factors," Fed chair Janet Yellen said last week after policymakers met to discuss the outlook for monetary policy. "Despite the soft first quarter, the fundamentals underlying household spending appear favourable, and consumer sentiment remains solid."


THE world's largest economy shrank in the first quarter, just not as much as previously estimated, assisted by a bigger gain in consumer spending.

Gross domestic product (GDP) fell at a 0.2 per cent annualised rate, compared with a previously reported 0.7 per cent drop,...

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