U.S. growth is better, but still weak

WASHINGTON (AP) — The economy logged slightly better — but weak — growth in the first quarter, spurred by improved sales of U.S. products overseas. While that’s heartening, the country is still far from being out of the woods.

In fact, a closer look behind the 0.9 percent increase in the gross domestic product during the January-to-March period revealed much caution on the part of consumers who have been clobbered by the housing, credit and financial debacles.

“What emerges is a picture of an economy that’s gasping for air,” said Bernard Baumohl, managing director of the Economic Outlook Group.

Consumers — major shapers of overall activity and thus the economy’s lifeblood — boosted their spending at the slowest pace since the last recession, in 2001. And, their decreased appetite for shopping sprees reduced sales of foreign-made imports here, which also helped to narrow the trade deficit.

The new GDP reading, released Thursday by the Commerce Department, was an improvement from the government’s initial first-quarter estimate as well as the economy’s performance in the final quarter of last year. Both periods were pegged at a 0.6 percent growth rate.

However, economists still consider the 0.9 percent growth rate subpar. More normal growth would be along the lines of a 2.5 percent to 3 percent pace, they said.