GDP grew at 1.8% (annualized) in the first 3 months of 2011. That’s down from the 3.1% annual pace last quarter. Analysts suggest rising gas prices and winter weather were factors in the slowdown.
(My February post on oil prices is here.)
From the Washington Post:
Economic growth slowed at the start of the year, weighed down by higher oil prices and lower government spending, according to new data that lays bare the challenging climb the United States faces in trying to emerge from its long period of weakness.
Gross domestic product, the broadest measure of economic activity, rose at a 1.8 percent annual rate in the January through March period, down sharply from the 3.1 percent pace of growth in the final quarter of last year. Economists had forecast 2 percent growth.
Indeed, the growth rate in the first quarter, if sustained, would be too weak to bring down unemployment meaningfully. The economy must grow at a 2.5 percent or so rate just to create enough jobs to accommodate a growing population and more efficient workers.
The full article is here.
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