FX trading- U.S. economy contracted at a better than expected 1 percent annual pace in the second quarter. However not all figures are positive.

Gross domestic product had a 6.4 percent contraction in the prior three months, the worst in 27 years, as Commerce Department figures showed today in Washington.

As The New York Times reported "The economy´s long, leveled off significantly in the second quarter, as stock markets started to recover, corporate profits bounced back, housing markets stabilized and the rampant pace of job losses tapered off. Declines in business investment leveled off, and the economy was aided by big increases in government spending at the federal, state and local levels."

Consumer spending fell again, by 1.2 percent as Americans put over 5 percent if their disposable income into savings. Analysts are worried that consumer spending, which makes for 70 percent of the economy, will not have as much of a fast rebound.

As CNN explained, U.S. recession hit hard since December of 2007, having its worst decline in the past months. The fourth quarter of 2008 and first quarter of 2009 measured the worst two quarterly declines in 26 years -- the nation's gross domestic product fell a revised 5.4% and 6.4% respectively.

Economists had forecasted the economy to shrink at a 1.5 percent pace. However government´s numbers say otherwise.

Government spending rose to a 5.6 percent pace last quarter, the highest since 2003. Obama´s administration stimulus program for $787 billion was approved in February.