WASHINGTON – The U.S. economy slowed in the January-March quarter to the weakest pace in a year. But the slowdown was not as pronounced as first thought because of less drag from business investment and trade and more of a boost from housing.
The Commerce Department says the gross domestic product, the broadest measure of economic output, grew at an annual rate of 0.8 percent in the first quarter, slightly better than the 0.5 percent first estimated.
It was the second weak quarter in a row, following a modest 1.4 percent gain in the fourth quarter. At the beginning of this year, the economy was held back by turbulence in financial markets and global economic problems.
Economists are forecasting a rebound in the current quarter to growth of around 2 percent.