MercoPress. South Atlantic News Agency

US Economy Expands 3.2%, Third Consecutive Quarter of Growth

President Obama admits US citizens are really waiting for the magic “You are hired”

The US economy grew in the first three months of this year, but at a slower rate than the previous quarter. US consumer spending saw its biggest increase in three years in the first three months of 2010, which drove the country's overall economy to its third consecutive quarter of growth.

However, the estimate from the United States Department of Commerce of 3.2% economic growth from January through March is weaker than the 5.6% growth seen last October through December. However, President Barack Obama said that three consecutive quarters of growth are a good sign, after four straight quarters of shrinkage.

“After the single biggest economic crisis in our lifetimes, we are heading in the right direction,” said President Obama. “We are moving forward. Our economy is stronger. That economic heartbeat is growing stronger.” Obama said the first-quarter growth is “an important milepost” in the nation's economic recovery. But he acknowledges that unemployment is still high at 9.7%, and after visiting the hard-hit Midwest this week, he says more work lies ahead.

“For millions of Americans, our friends, neighbours and fellow citizens ready and willing to get back to work, 'You are hired' is the only economic news they are waiting to hear,” said Mr. Obama. But he added that a rebounding economy will make more hiring possible. “And that growth has been a condition for job growth,” said the president. “The economy that was losing jobs a year ago is creating jobs today.”

The Department of Commerce report shows that US consumers have been spending more lately on home furnishings, appliances, recreational goods, clothing, and meals at restaurants. But analysts expect unemployment to stay high in the coming months, and an Associated Press poll says only 21% of Americans believe the economy is in good condition.