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First-Quarter U.S. Economic Growth Slower Than Expected
America's gross domestic product increased at a 1.8% annual rate in the January-March period of this year compared with an earlier estimate of 2.4% growth, the Dept. of Commerce reports.
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America's gross domestic product increased at a 1.8% annual rate in the January-March period of this year compared with an earlier estimate of 2.4% growth, the Dept. of Commerce reports.
The U.S. economy expanded just 0.4% in the fourth quarter of 2012.
The major change to first-quarter GDP was a downward revision of consumer spending to 2.6% from the previous projection of 3.4%. The Commerce Dept. cites lower expenditures for services such as healthcare, legal counsel and travel.
Exports, nonresidential real estate spending and imports particularly of autos and auto parts also were lower than originally estimated, according to the department.
Economists worry that the slow first-quarter expansion will make it difficult for the country to attain the 2.3%-2.6% growth the Federal Reserve is predicting for the full year. That outlook prompted the Fed to say earlier this week that it will gradually phase out stimulus measures, such as its $85 billion monthly bond-buying program.
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