The U.S. economy slowed to a moderate 2.3% annual growth rate in the first quarter as consumer spending turned in the weakest performance in nearly five years.
Still, the January-March increase came in better than expected, supporting hopes for a solid rebound for the rest of the year.
The Commerce Department says the gain in the gross domestic product, the economy’s total output of goods and services, followed a 2.9% rise in the fourth quarter and gains above 3% in the previous two quarters.
Many economists had forecast that growth would slip below 2% in the first quarter, reflecting a big pullback by consumers after a torrid pace of spending in the fourth quarter. Recent history has shown a pattern of weakness in the first quarter, reflecting in part seasonal data quirks. Analysts expect growth to surpass 3% in the current quarter.
