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US economy grows, but still weak

The American economy is picking up speed after a slow start to the year, but the overall gains are still likely to fall short of expectations.

The US economy grew slightly faster in the first quarter of 2016 than originally thought but the overall growth was still anemic, underscoring some persistent weaknesses, especially in manufacturing.

US economic growth in the first quarter of 2016, between January and March, was 0.8 percent, the US Commerce Department said Friday.

That's better than the initial government’s estimate of 0.5 percent, which came in April, but still pretty sluggish.

The overall gains are still likely to fall short of what many experts and ordinary workers would hope to see as the recovery nears the end of its seventh year.

“It was still a tepid quarter even if it was less bad. That doesn’t equal good growth,” said Diane Swonk, an independent economist based in Chicago.

Next week should provide greater clarity about the economy’s real momentum. On Tuesday, the Commerce Department will report on consumer income and spending in April, and Friday will bring the Labor Department report on May unemployment and hiring, a crucial metric for the Federal Reserve.

The majority of Americans are strikingly pessimistic about the US economy and think the economy won’t improve, according to a poll released earlier this month.

Only 42 percent of adults describe the US economy as good and just 23 percent think the economy will improve this year, according to a survey by The Associated Press-NORC Center for Public Affairs Research.

Just a third say they'd be very confident of finding another job if they were laid-off -- a sign of vulnerability even though the Great Recession officially ended nearly seven years ago.

The United States has endured a sluggish economic recovery from the worst downturn since the Great Depression. Nothing has ignited the robust economic growth that Americans remember enjoying until the Great Recession struck in late 2007.

Some view the slow growth as a sign that the economy has never escaped the threat of another recession.

For years, Americans have seen the US political class feud over how to accelerate economic growth and extend more opportunities to people who have been left out, with little progress.


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