U.S. economy grew slightly faster in first quarter

The U.S. economy expanded a little faster at the beginning of the year than previously estimated. But the pace was still anemic, and economists don’t see that changing until later this year. The Commerce Department says the economy grew at an annual rate of 1.9% in the January-March quarter. That’s not much better than the 1.8% rate estimated a month ago. The small upward revision reflected stronger exports and more business spending on stockpiles. High gas prices were a major reason growth slowed. The impact of those prices has carried over into the current quarter. The economy is growing in the current April-June quarter at a rate of about 2.3%, according to an Associated Press survey of 38 top economists. Today stocks fell in early-morning trading. The Dow Jones industrial average dropped 100 points and broader indexes declined. Growth must be stronger to make a noticeable dent in unemployment, which was 9.1% last month. The economy would need to grow 5% for a whole year to significantly bring down the unemployment rate. Economic growth of 3% a year would hold the unemployment steady and keep up with population growth. There are signs that some of the factors that slowed the economy are starting to ease. The average price for a gallon of gas has fallen nearly 40 cents since peaking at nearly $4 in early May.