GDP slows down in Q1, increase in jobless claims seen

 The US Labor Department on Thursday said that the drop in the US economy has showed vital signs of slowing down, saying that it is doing far better compared to the same period last year.

This, as the Labor Department also said that despite continuous company layoffs, people who lost their job during the recession were still having a hard time looking for new ones.

Last week, the department recorded an unexpected jump in the number of jobless claims, adding that the number of people asking for unemployment aid ballooned more than what is projected.

In a revised GDP report, officials claimed that the US economy registered a 5.5 percent decline from January to March of 2009. Analysts predicted 5.7 percent last month.

US economists believe that the slower pace in the shrinkage of the economy can be attributed to small upgrades done by the government during the first quarter. At present, the economy slowed down at 2 percent.

Meanwhile, major and small business also did not halt the stockpiles of its goods as much as last year resulting to a sharp drop in the import markets.

On the other hand, the number of jobless claims rose by more than 15, 000 in initial claims. The seasonal adjustment for the claims is 627, 000 but economist projected the drop by 600, 000.