U.S. first-quarter growth weakest in three years as consumer spending falters

Reuters/Lucia Mutikani/04-28-17

The U.S. economy grew at its weakest pace in three years in the first quarter as consumer spending barely increased and businesses invested less on inventories, in a potential setback to President Donald Trump’s promise to boost growth.

Gross domestic product increased at a 0.7 percent annual rate also as the government cut back on defense spending, the Commerce Department said on Friday. That was the weakest performance since the first quarter of 2014.

PG View: That falls right between the Atlanta Fed’s GDPNow forecast and expectations. Still, it makes the March rate hike look pretty ill-advised.

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