WASHINGTON — The U.S. first-quarter real gross domestic product report shows steady growth albeit at a slow pace, but the details are consistent with further slowdown.
First-quarter real GDP posted a 0.6% rise, the same pace as in the fourth quarter and as expected, but real final sales fell 0.2% in a sign of weakness. This marked the first drop in final sales since a 0.5% decline in the fourth quarter of 2005.
Consumption slowed on dips in durables and nondurables spending. Only services spending was up.
Consumption printed up 1.0%. The last time it grew so slowly was the second quarter of 2001, and the last time it grew slower was in the first quarter of 1995, a near-recession quarter.
— Market News International