The US economy fell at an annual rate of 5.5 percent in the first quarter, slightly less than last month's 5.7 percent decline, according to final estimates released on Thursday by the Commerce Department.

The first-quarter fall, the third straight quarterly decline, followed decreases of 6.3 percent in the final quarter of 2008 and 0.5 percent in the third quarter of last year.

The department's revised readings showed that businesses' cuts in inventories shaved 2.20 percentage points from economic activity. That was less than the 2.34 percentage-point reduction previously reported.

Meanwhile, US imports fell at an annual rate of 36.4 percent, deeper than the 34.1 percent rate of decline previously estimated. And exports fell sharply but not as much as imports.

Consumer spending, which accounts for two thirds of overall economic activity, rose by 1.4 percent, less energetic than the 1.5 percent growth rate estimated last month.

Still, it marked the best showing in nearly two years and a huge improvement from the fourth quarter's 4.3 percent plunge, the most in nearly three decades.

Many economists believe that the recession is easing and the economy is not sinking nearly as much now. They predicted the economy is declining at a pace of between 1 and 3 percent in the current April-June quarter.

US Federal Reserve Chairman Ben Bernanke estimated that the recession, now the longest since World War II, would end later this year.

On Wednesday, the Fed kept a key interest rate unchanged at a record low of between zero and 0.25 percent. It said that it continues to anticipate that policy actions, fiscal and monetary stimulus, and market forces will contribute to "a gradual resumption of sustainable economic growth in a context of prices stability."

(Xinhua News Agency June 26, 2009)