ECONOMY

ECONOMY PROBABLY GREW 3.6% IN FIRST QUARTER

America’s economic expansion was stronger in the first quarter than the government first estimated and increased consumer and business spending in April is lifting growth prospects for the current quarter, economists expect reports this week to show. The economy probably expanded at a 3.6% annual rate from January through March, faster than the 3.1% pace reported last month, according to the median forecast in a Bloomberg News survey ahead of the Commerce Department’s May 26 release. The economy grew 3.8% in the fourth quarter. Consumer spending rose more in April than in any of the previous three months and business investment in new equipment rebounded after a March slump, other reports are projected to show, suggesting the economy shows little sign of weakening because of record gasoline prices. “Talk about a soft spot has vaporized,” said Tim Rogers, chief economist at Briefing.com in Boston. “The economy is running steady and strong based on the pillars of consumer spending and business investment.” A smaller trade deficit in March and rising retail sales helped boost the pace of growth last quarter, economists said. A smaller deficit can be a sign of growth because it suggests domestic rather than foreign producers are meeting more demand.

– Bloomberg News

FOREIGN EXCHANGE

SOME INVESTORS SAY GREENBACK BEAR MARKET IS OVER

The dollar is poised for its longest winning streak against the euro since 2000 as some investors say the American currency’s three-year bear market has ended, a Bloomberg News survey has found. Fifty-nine percent of the 54 strategists, investors, and traders polled on May 20 from Sydney to New York advised buying the dollar against the euro. Thirty-seven percent said the dollar will rise versus the yen, while 24% said it may drop. “The bear market has been broken,” said Thanos Papasavvas, head of currency management in London at Credit Suisse Asset Management. He said he decided on May 19 to invest in the dollar advancing against the euro.

– Bloomberg News

REAL ESTATE

CHETRIT TO BUY 575 FIFTH AVE.

Investor Joseph Chetrit has won the bidding for the office tower at 575 Fifth Ave., sources told the Sun. Mr. Chetrit has agreed to pay approximately $405 million, or $750 a square foot, to Sterling Equities at the former site of the EJ Korvettes department store.

– Special to the Sun