U.S. economic growth estimate cut for Q1

The U.S. Commerce Department Friday lowered its estimate of how much the American economy grew in the first three months of 2010.

It said new information since its first calculation was released in May showed that consumers spent less than previously believed.

Its new estimate for gross domestic product was an increase of 2.7 per cent, compared with the previous calculation of 3.0 per cent.

That was much lower than the 5.6 per cent pace in the last quarter of 2009.

The department's report is the third of three estimates it makes for each quarter's GDP, the broadest measure of the nation's economic output.

The U.S. economy has grown for three consecutive quarters after shrinking for four straight during the recession — the longest contraction since the Second World War.

In normal times, 2.7 per cent growth would be considered healthy. But it's relatively weak for a recovery after a steep recession.