Economy Grows at Slowest Pace in Two Years

Economy Grows at Slowest Pace in Two Years:
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Washington Post Staff Writer
Thursday, April 28, 2005; 9:41 AM

The U.S. economy grew at its slowest pace in two years in the first three months of 2005, the Commerce Department reported today, thanks to slowing consumer and business spending, rising energy prices and the expanding trade gap.

The rate of growth of the nation's gross domestic product (GDP) -- the broadest measure of economic activity -- slowed to 3.1 percent, today's report said, down from 3.8 percent in the previous quarter and significantly below the 4.5 percent growth rate in the first quarter of last year.

Today's figure of 3.1 percent also failed to meet the expectations of economists for a growth rate of 3.6 percent.

The report, an estimate which is often revised up or down, was yet another sign of a slowing economy even as prices, and inflation, are on the rise."