GDP growth slows to 2.2% in first quarter

The U.S. economy grew more slowly in the first three months of this year. Stronger consumer spending was offset by cutbacks in government spending and business investment.

The U.S. economy grew more slowly in the first three months of this year. Stronger consumer spending was offset by cutbacks in government spending and by businesses restocking their shelves at a slower pace.

WASHINGTON — The U.S. economy grew at a 0.1 percent annual rate from October through December, the weakest performance in nearly two years. But economists believe a steady housing rebound, stronger hiring and solid spending by consumers and businesses are pushing economic growth higher in the current quarter. The Commerce Department’s second estimate of fourth-quarter growth was only slightly better than its initial estimate that the economy shrank at a rate of 0.1 percent. And it was well below the 3.1 percent growth rate reported for the July-September quarter.

WASHINGTON — The U.S. economy grew at a 0.1 percent annual rate from October through December, the weakest performance in nearly two years. But economists believe a steady housing rebound, stronger hiring and solid spending by consumers and businesses are pushing economic growth higher in the current quarter. The Commerce Department’s second estimate of fourth-quarter growth was only slightly better than its initial estimate that the economy shrank at a rate of 0.1 percent. And it was well below the 3.1 percent growth rate reported for the July-September quarter.

If the trend is reflected in official data, it could signal an end of the period in which employment has been growing strongly while economic output remains flat, reports The Financial Times. The survey also found that a two-speed labour market is emerging where there is a lack of candidates for high-skilled roles despite relatively high unemployment.

US economic growth slowed more-than-expected to 2.2pc in the first quarter of the year, as stronger consumer spending was offset by cutbacks in government spending and business investment.