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US economy grew a mere 0.1% in first quarter amid severe winter weather

Published on Apr 30, 2014 8:49 PM
 

WASHINGTON (REUTERS) - The US economy barely grew in the first quarter as exports tumbled and businesses accumulated stocks at the slowest pace in nearly a year, but activity already appears to be bouncing back.

Gross Domestic Product expanded at a 0.1 per cent annual rate, the slowest since the fourth quarter of 2012, the Commerce Department said on Wednesday. That was a sharp pullback from the fourth quarter's 2.6 per cent pace. Economists polled by Reuters had expected growth to slow to a 1.2 per cent rate.

The slowdown partly reflected an unusually cold and disruptive winter, marked by declines in sectors ranging from business spending to home building.

The Commerce Department's first snapshot of first-quarter growth was released just hours before the Federal Reserve wraps up a two-day policy meeting.

 
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