Growth slows sharply as consumer spending weakens

Washington

US economic growth braked sharply to its slowest pace in two years as consumer spending softened and a strong dollar continued to undercut exports, but a pick-up in activity is anticipated given a buoyant labour market.

Gross domestic product (GDP) increased at a 0.5 per cent annual rate, the slowest since the first quarter of 2014, the Labor Department said on Thursday in its advance estimate, also as businesses doubled down on efforts to reduce unwanted merchandise clogging up warehouses.

The economy was also blindsided by cheap oil, which has hurt the …