Economic Growth Plummets to 0.1%

Weaker-than-predicted figure blamed on weather
By Newser Editors and Wire Services
Posted Apr 30, 2014 9:03 AM CDT
In this April 15, 2014 photo, a man wires blender motors at a facility in Strongsville, Ohio. The GDP's growth rate slowed to 0.1% in the first quarter.   (AP Photo/Mark Duncan)

(Newser) – The US economy slowed drastically in the first three months of the year as a harsh winter exacted a toll on business activity. The sharp slowdown, while worse than expected, is likely to be temporary as growth rebounds with warmer weather. The economy's growth slowed to a barely discernible 0.1% annual rate in the January-March quarter, the Commerce Department said today. That's the weakest pace since the end of 2012 and is down from a 2.6% growth rate in the October-December quarter. Economists had been predicting a 1.1% rise. Meanwhile, consumer spending grew at a 3% rate, but the gain was dominated by a 4.4% rise in spending on services, reflecting higher utility bills. (Read more GDP stories.)

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