US economy barely grew in 1st quarter

Associated Press

WASHINGTON

The U.S. economy skidded to a near-halt in the first three months of the year, battered by a triple whammy of harsh weather, plunging exports and sharp cutbacks in oil and gas drilling.

The overall economy grew at a barely discernible annual rate of 0.2 percent in the January-March quarter, the Commerce Department reported Wednesday. That is the poorest showing in a year and down from 2.2 percent growth in the fourth quarter.

The government’s first look at economic growth for the first quarter, as measured by the gross domestic product, came as the Federal Reserve wrapped up two days of discussions on interest-rate policies.

Though the economy can brush off the temporary factors behind the slowdown, it will have to contend with ongoing challenges such as the strong dollar for some time.

Plummeting exports dragged down growth by nearly a full percentage point.

The category that includes investments in oil and gas exploration plunged 48.7 percent. Consumer spending slowed sharply as a severe winter kept shoppers home.