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U.S. GDP growth slows to two-year low 0.5%

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Staff writer ▼ | April 29, 2016
U.S. economic growth slowed surprisingly in the first quarter of the year, falling to an annual rate of 0.5% that was short of the forecast of 0.6%.
U.S. economic growth
America   Growth in gross domestic product
Growth in gross domestic product (GDP) in the first quarter of 2016 was a big slowdown from the 1.4% rate enjoyed in the fourth quarter of 2016, the weakest expansion seen for two years.

As usual, the 'advance' estimate from the U.S. Commerce Department is based on source data that are incomplete or likely to be subject to further revision.

Apart from the housing market, all main parts of the economy appeared to slow, with business spending falling at the fastest rate since the second quarter of 2009, dragged 5.9% lower by cost cutting in the energy sector in particular.

Consumer spending growth slumped to 1.9% from 2.4% and exports fell 2.6%.