Economy Grew At 1.8% Rate In Q1

The New York Times reports:

WASHINGTON — High gasoline prices, government budget cuts and weaker-than-expected consumer spending caused the economy to grow only weakly in the first three months of the year.

The economy expanded at an annual rate of 1.8 percent in the January-to-March quarter, the Commerce Department saidThursday. That figure matches the government’s first estimate a month ago.

Consumer spending grew at just half the rate of the previous quarter. And a surge of imports widened the United States trade deficit.

Most economists think the economy is growing only slightly better, at a 2.5 percent annual rate, in the current April-to-June quarter. Consumers remain squeezed by gas prices, scant pay increases and a depressed housing market.