Economic growth slowing while inflation stays firm

    Falling short of economists’ expectations, U.S. economic growth slowed in the first part of the year, The Wall Street Journal reports

    Gross domestic product expanded at a 1.6% seasonally-and inflation-adjusted annual rate in the first quarter, the Commerce Department said Thursday morning. That’s a pullback from last year’s quick pace.

    Growth in the first quarter fell more than 2% lower than economists had anticipated. 

    Following the reports release, stocks dropped and there was a selloff in bonds, driving yields on the 10-year Treasury note above 4.7% for the first time this year.

    Spending on health care, insurance and other services remains heavy, but a slowdown in spending on other goods such as cars and gasoline, as well as in exports and businesses’ inventory investments, weighed down overall growth.

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