U.S. economic growth slowed in the first three months of the year, with the nation’s real gross domestic product (GDP) increasing by just 0.5 percent, the slowest pace in a couple years.
That’s according to data issued by the U.S. Commerce Department’s Bureau of Economic Analysis (BEA) on Thursday morning.
The first-quarter GDP growth was down from 1.4 percent growth in the fourth quarter of last year, 2 percent in the third quarter, and 3.9 percent in the second quarter.
The weaker economic activity between January and March of this year was primarily led by a slowdown in consumer spending and businesses cutting back on investments in plants, equipment, and inventory, according to the BEA data.
Nonresidential investment, a gauge of business spending on structures and equipment, plunged 5.9 percent in the first quarter.
Consumer spending on goods rose just 0.1 percent in the first three months of 2016, down substantially from recent quarters.
Exports fell 2.6 percent, while imports increased 0.2 percent.
The BEA defines real GDP as the value of the goods and services produced by the nation’s economy, minus the value of the goods and services used up in production, adjusted for price.
Today’s GDP estimate is subject to further revision by the BEA, as more updated information is incorporated. The bureau said it will issue a second estimate for first-quarter GDP on May 27.
Contact Rombel at arombel@cnybj.com