Economy stalls in Q1, GDP grows at 0.2% rate

Washington

US economic growth braked more sharply than expected in the first quarter as harsh weather dampened consumer spending and energy companies struggling with low prices slashed spending, but there are signs activity is picking up.

Gross domestic product (GDP) expanded at an only 0.2 per cent annual rate, the Commerce Department said on Wednesday. That was a big step down from the fourth quarter's 2.2 per cent pace and marked the weakest reading in a year.