Economy grew at slow pace during the first quarter of 2017

The U.S. economy grew at its slowest pace in three years during the January-March quarter as gross domestic product (GDP) increased 0.7 percent, according to The Washington Post. In the fourth quarter of 2016, real GDP increased 2.1 percent.

During the first quarter of 2017, consumer spending grew at just 0.3 percent, the slowest pace since 2009, and government outlays fell.

Economists say the significant slowdown from the previous quarter is likely because of measurement error rather than Donald Trump's performance as president, and most had been expecting lackluster growth. Most economists also expect the pace of growth to rebound during the second quarter. However, the data highlights the challenge this administration will face trying to meet its target rate of 3 percent economic growth.

The Federal Reserve is likely to continue with its plan to hike interest rates two more times this year after already raising rates at its March meeting.

Date : 5/1/2017