The US economy has sharply shrunk during the first half of the year and nearly slipped back into recession. The situation turned out to be challenging in the first quarter. Investment volume significantly reduced, the exports fell, and the consumer activity decreased. According to experts, the US economy retraced to the previous "erratic growth", which had been a specific feature of the American business life for last six years. As a result, it was necessary to revise the data on the gross domestic product growth. It was initially reported that the figure increased to a seasonally adjusted 0.2 percent, but according to new GDP data, on the contrary, it decreased by 0.7 percent. Importantly, the US economy added 2.2 percent in the fourth quarter and 5 percent in Q3. In addition, the strong dollar has a negative impact on the US exports. The currency strengthening has made domestic goods more expensive for foreign customers and imported products, on the contrary, have become cheaper. As a result, exports increased by 7.6 percent, while imports rose by 5.6 percent in the first quarter. Some problems are observed with the growth in consumer spending, which generate more than 70 percent of the US economy and is a key factor of its development. Earlier this year, spending growth slowed down due to harsh winter, and it is still showing signs of decline. Indeed, consumer confidence had been reviving by weak pace. However, the situation is beginning to change amid the improvement of weather conditions, the creation of job places, and the reduction in petrol prices. The report showed that services costs increased but, at the same time, goods expenditures declined. Personal savings rose to 5.5 percent in April, which cannot but satisfy ordinary Americans.
