U.S. Economy Expands at Slowest Pace in Four Years
The U.S. economy expanded at an annual pace of 0.7 percent in the first quarter, the slowest in four years, and a gauge of inflation watched by the Federal Reserve was unexpectedly revised up.
The increase in gross domestic product compares with the 0.6 percent rate estimated last month and follows a 2.5 percent gain the last three months of 2006, according to a report from the Commerce Department issued today in Washington. The price measure rose at the fastest since the second quarter of 2006. Last quarter was probably the low point for growth as the trade deficit narrows and businesses boost spending and rebuild inventories, economists said. The increase in prices suggests Fed policy makers, meeting today, will hold interest rates unchanged for months to come.
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