Economics
U.S. Economy Grew 0.7% in First Quarter, Slowest in Three Years
- Consumption is worst since 2009 on auto demand, utilities
- Investment is bright spot, including housing and oil drilling
U.S. Economy Expands at Slowest Pace in Three Years
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The U.S. economy expanded at the slowest pace in three years as weak auto sales and lower home-heating bills dragged down consumer spending, offsetting a pickup in investment led by housing and oil drilling.
Gross domestic product, the value of all goods and services produced, rose at a 0.7 percent annualized rate after advancing 2.1 percent in the prior quarter, Commerce Department data showed Friday in Washington. The median forecast of economists surveyed by Bloomberg called for a 1 percent gain. Consumer spending, the biggest part of the economy, rose 0.3 percent, the worst performance since 2009.