US Economy Growing Slower Than Expected

The US Commerce Department said today that for the first quarter of the year, the economy grew at an annualized rate of 1.8 percent. The result is less than was predicted and considerably weaker than the 3.1 percent rate of growth recorded in the final quarter of 2010.

“Consumer spending was pretty anemic last quarter, and households are likely to be somewhat restrained going forward,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. “One of the few things that remains strong is manufacturing, helped by the replacement cycle and foreign demand. Economic growth will run a little faster than the first quarter but nothing blockbuster.”

Source: Bloomberg