US GDP Growth Slows to 1.8% in Q1
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The initial reading for US gross domestic product during the first quarter of 2011 came in worse-than-expected Thursday, showing consumers -- whether they are optimistic about the economic recovery or not -- have recently pulled back on spending.
The Commerce Department's measure of US growth fell from a final reading of 3.1 percent during the last quarter of 2010 to 1.8 percent. Economists had been expecting growth of 2 percent.
The latest GDP reading reflects US consumer's concerns related to a still-crawling housing market, rapidly rising gas prices as summer approaches and the eventual policy tightening by the Fed as inflation looms.
Thursday's growth rate marks the slowest pace of expansion since the second quarter of last year.
With about a half hour left in pre-market trade, Dow Jones futures are down 18 points, Nasdaq futures are down nearly 5 and S&P 500 futures are down about 2.
The Commerce Department's measure of US growth fell from a final reading of 3.1 percent during the last quarter of 2010 to 1.8 percent. Economists had been expecting growth of 2 percent.
The latest GDP reading reflects US consumer's concerns related to a still-crawling housing market, rapidly rising gas prices as summer approaches and the eventual policy tightening by the Fed as inflation looms.
Thursday's growth rate marks the slowest pace of expansion since the second quarter of last year.
With about a half hour left in pre-market trade, Dow Jones futures are down 18 points, Nasdaq futures are down nearly 5 and S&P 500 futures are down about 2.
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