The U.S. economy grew more slowly in the first three months of this year as governments spent less and businesses cut back on investments. But consumers also spent at the fastest pace in more than a year, suggesting the economy will continue to expand, slowly but steadily. The Commerce Department reports today that the economy grew at an annual rate of 2.2% in the January-March quarter, compared with a 3% rate in the final quarter of 2011. But growth is expected to rebound to around 3% for all of 2012 as stronger job growth spurs more consumer spending, which accelerated to an annual rate of 2.9% in the first quarter. The strength primarily came from a second straight robust quarter of growth in auto sales. The Associated Press has broken down each segment of today’s report, and you can see the complete analysis here.
A weaker first quarter does not portend a weak year
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