U.S. gross domestic product increased 1.1% during the first quarter of 2016, thanks to a rise in personal consumption expenditures, residential fixed income, state and local government spending and exports, according to the latest data from the Bureau of Economic Analysis. Though the GDP growth is higher than the 0.8% previously estimated, it is down from 2015 Q4 GDP growth of 1.4%.
The Commerce Department also reported this week the U.S. trade gap grew in May by a seasonally adjusted $60.59 billion. Imports, especially those of industrial supplies, increased in May. Exports, however, declined.
Volkswagen AG will pay a $14.7 billion settlement in its diesel emissions cheating scandal. About $10 billion of the settlement funds will go to 500,000 VW diesel car owners in the U.S., each getting between $5,100 and $10,000 in compensation.
Shigehisa Takada, the chief executive of Takata Corp., which is also in the middle of its own recall for defective airbags, announced he will resign after the airbag supplier completes restructuring processes. Takada said he would take responsibility in containing recalls and finding a way to restructure the business.