The U.S. economy barely grew at all in the first quarter as harsh winter weather chilled investment and exports dropped. The stall occurred even as consumer spending on services rose by the most in 14 years.
Gross domestic product grew at a 0.1 percent annualized rate from January through March, compared with a 2.6 percent gain in the prior quarter, figures from the Commerce Department showed today in Washington. The median forecast of 83 economists surveyed by Bloomberg called for a 1.2 percent increase. Household purchases rose at a 3 percent pace, spurred by utility outlays and spending on health care tied to President Barack Obama's Affordable Care Act.
The pullback in growth came as snow blanketed much of the eastern half of the country, keeping shoppers from stores, preventing builders from breaking ground and raising costs for companies including United Parcel Service Inc. Gains in retail sales, employment and manufacturing at the end of the quarter indicate the setback will be temporary, so Federal Reserve policy makers meeting today in Washington will probably take little heed.
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