U.S. economic growth slowed in the first part of the year, falling short of economists’ expectations.
Gross domestic product expanded at a 1.6% seasonally- and inflation-adjusted annual rate in the first quarter, the Commerce Department said Thursday, a pullback from last year’s quick pace.
Growth in the first quarter lagged behind the 2.4% projected by economists polled by The Wall Street Journal.
U.S. stock futures edged lower after the report, while yields on benchmark 10-year Treasurys ticked up slightly.
American consumers are still spending heavily on healthcare, insurance and other services, the Commerce Department said. But a slowdown in spending on goods such as cars and gasoline, as well as a decrease in businesses’ inventory investments, weighed down overall growth.
