Economy Growth Slows To Two-Year Low

    April 28, 2005
    Chris Crum

The growth of the U.S. economy slowed down to 3.1% in the first quarter, its slowest rate in two years.

According to the Commerce Department, the widening trade deficit and rising gas prices have heavily influenced consumer and corporate spending which has been limited.

A Washington Post article says:

The rate of growth of the nation’s gross domestic product (GDP) — the broadest measure of economic activity — slowed to 3.1 percent, today’s report said, down from 3.8 percent in the previous quarter and significantly below the 4.5 percent growth rate in the first quarter of last year.

Today’s figure of 3.1 percent also failed to meet the expectations of economists for a growth rate of 3.6 percent.

Federal Reserve policymakers will meet Tuesday to discuss interest-rate strategy.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.