Economists: First-Quarter Weakness Unlikely to Carry Through in 2016

By The FedFOXBusiness

U.S. economy grows 0.5 percent in 1Q

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U.S. economy grows 0.5 percent in 1Q

FBN's Liz MacDonald and TJM Investments SVP Scott Shellady discuss 1Q GDP and whether the economy is headed towards recession.

After a rough start to 2016, data from the Commerce Department confirmed what many on Wall Street suspected: Growth in the world’s biggest economy slowed in the first quarter.

U.S. economic growth dropped to its slowest pace in two years during the first three months of the year as gross domestic product increased at a seasonally-adjusted annualized rate of 0.5%. That’s down from growth of 1.4% in the fourth quarter of 2015, and below consensus estimates for a 0.7% pace.

Growth during the period came from positive contributions from personal spending, residential fixed investment, and state and local government spending. The drag came from declining business spending, private inventory investment, exports and federal government spending.

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