

US economic growth gained speed to an annual rate of 2.5 percent in the first quarter, but not enough to meet forecasts made by economists.
The Commerce Department said on Friday that gross domestic product (GDP) expanded at a 2.5 percent annual rate, after growth nearly stalled at 0.4 percent in the fourth quarter.
However, the increase missed economists' expectations for a three percent growth pace.
"It wasn't the bang-up start to the year we had hoped for, and the signals from March suggested that we will only decelerate from here into the spring trimester," said Avery Shenfeld, chief economist at CIBC World Markets Economics in Toronto.
Part of the acceleration in activity reflected farmers' filling up silos after a drought last summer decimated crop output. Removing inventories, the growth rate was a tepid 1.5 percent.
Consumer spending, which accounts for more than two-thirds of US economic activity, increased at a 3.2 percent pace - the fastest since the fourth quarter of 2010. It grew at a 1.8 percent rate in the fourth quarter of last year.
However, households cut back on saving to fund their purchases after incomes dropped at a 5.3 percent rate in the first quarter. The drop in income was the largest since the third quarter of 2009.
The saving rate fell to 2.6 percent, the lowest since the fourth quarter of 2007, from 4.7 percent in the fourth quarter of 2012.
Monetary stimulus
The GDP report could give ammunition for the Federal Reserve to maintain its monetary stimulus.
The US central bank, which meets next week, is widely expected to keep purchasing bonds at a pace of $85bn a month.
Although government spending, which fell to a 4.1 percent annual rate, tax increases and federal budget cuts could slow growth later this year.
Data ranging from employment to retail sales and manufacturing weakened substantially in March after robust gains in the first two months of the year. There are indications the weakness persisted into April.
The GDP report showed contributions to growth from all areas of the economy, with the exception of government, trade and investment by businesses in offices and other commercial buildings.
Homebuilding growth
Much of the gains in first-quarter spending came from car purchases and outlays for utilities, which were boosted by unusually cold temperatures.
Consumers managed to step up their spending despite the return of a two percent payroll tax and higher petrol prices.
Despite the spike in petrol prices, inflation pressures were benign in the first three months of the year.
An inflation gauge in the government's GDP report rose at a 0.9 percent rate, the smallest increase since the second quarter of 2012. The personal consumption expenditure index had increased at a 1.6 percent pace in the fourth quarter.
Business spending on equipment and software slowed sharply, growing at an only three percent rate after a brisk 11.8 percent pace in the fourth quarter.
Homebuilding marked an eighth straight quarter of growth, though the pace moderated from the fourth quarter.US economic growth gained speed to an annual rate of 2.5 percent in the first quarter, but not enough to meet forecasts made by economists.
The Commerce Department said on Friday that gross domestic product (GDP) expanded at a 2.5 percent annual rate, after growth nearly stalled at 0.4 percent in the fourth quarter.
However, the increase missed economists' expectations for a three percent growth pace.
"It wasn't the bang-up start to the year we had hoped for, and the signals from March suggested that we will only decelerate from here into the spring trimester," said Avery Shenfeld, chief economist at CIBC World Markets Economics in Toronto.
Part of the acceleration in activity reflected farmers' filling up silos after a drought last summer decimated crop output. Removing inventories, the growth rate was a tepid 1.5 percent.
Consumer spending, which accounts for more than two-thirds of US economic activity, increased at a 3.2 percent pace - the fastest since the fourth quarter of 2010. It grew at a 1.8 percent rate in the fourth quarter of last year.
However, households cut back on saving to fund their purchases after incomes dropped at a 5.3 percent rate in the first quarter. The drop in income was the largest since the third quarter of 2009.
The saving rate fell to 2.6 percent, the lowest since the fourth quarter of 2007, from 4.7 percent in the fourth quarter of 2012.
Monetary stimulus
The GDP report could give ammunition for the Federal Reserve to maintain its monetary stimulus.
The US central bank, which meets next week, is widely expected to keep purchasing bonds at a pace of $85bn a month.
Although government spending, which fell to a 4.1 percent annual rate, tax increases and federal budget cuts could slow growth later this year.
Data ranging from employment to retail sales and manufacturing weakened substantially in March after robust gains in the first two months of the year. There are indications the weakness persisted into April.
The GDP report showed contributions to growth from all areas of the economy, with the exception of government, trade and investment by businesses in offices and other commercial buildings.
Homebuilding growth
Much of the gains in first-quarter spending came from car purchases and outlays for utilities, which were boosted by unusually cold temperatures.
Consumers managed to step up their spending despite the return of a two percent payroll tax and higher petrol prices.
Despite the spike in petrol prices, inflation pressures were benign in the first three months of the year.
An inflation gauge in the government's GDP report rose at a 0.9 percent rate, the smallest increase since the second quarter of 2012. The personal consumption expenditure index had increased at a 1.6 percent pace in the fourth quarter.
Business spending on equipment and software slowed sharply, growing at an only three percent rate after a brisk 11.8 percent pace in the fourth quarter.
Homebuilding marked an eighth straight quarter of growth, though the pace moderated from the fourth quarter.




The opposition's decision to dispute ruling party candidate Nicolás Maduro's very narrow victory in the 14 April 2013 presidential election has heightened concern about the effects of the Venezuelan media's extreme polarization.
The demonstrations that have been held or will soon be held in various parts of the country are reinforcing the already considerable dangers for journalists and freedom of information.
Reporters Without Borders has learned of two incidents during demonstrations held by the opposition yesterday to press for a complete recount of the ballots.
In Caracas, supporters of opposition candidate Henrique Capriles yesterday besieged the buildings that house the Latin American TV news channel TeleSur and the main state-owned TV station, Venezolana de Televisión (VTV). The management of both stations said their staff were threatened and insulted.
At the same time, the Press and Society Institute Venezuela (IPYS-Venezuela) reported that its correspondent, Juan José Faria, and two other employees of the privately-owned local newspaper La Verdad, photographer Eduardo Méndez and driver Yolman Bejarano, were arrested in San Francisco, in the northwestern state of Zulia.
The three men were covering a “cacerolazo” (a neighbourhood protest consisting of banging on pots and pans) called by the opposition, when the police arrested them on a charge of “destabilization”. After confiscating their equipment and mobile phones, the police said they would be held until a preliminary court hearing scheduled for 16 April.
“At a time when each news media and, in particular, each journalist runs the risk of becoming caught in an explosive political situation, we make three urgent recommendations in the wake of those we made before the 14 April election”, Reporters Without Borders said.
Our recommendations:
• That the competent authorities provide equal safety guarantees to all journalists covering demonstrations and counter-demonstrations.
• That the media provide balanced coverage of statements by the leaders and members of the two main political forces.
• That media editors and columnists refrain from exaggeration and distortion, and from mutual accusations that will only increase the danger for their reporters in the field.
“The two main protagonists of this election, President-elect Nicolás Maduro and opposition leader Henrique Capriles, are also asked to act responsibly,” Reporters Without Borders said. “Both have a duty to ensure respect for fundamental constitutional freedoms – safety, the right to free movement and pluralist news and information.”
Reporters Without Borders hopes that its recommendations will be taken by the Organisation of American States, the Community of Latin American and Caribbean States (CELAC) and the Union of South American Nations (UNASUR).
ARTICLE 19's Mexico office has this morning received an anonymous letter containing a direct threat of reprisal for the work that the staff undertake to protect journalists from violence.





