The U.S. economy slowed to a moderate 2.3 percent annual growth rate in the first quarter as consumer spending turned in the weakest performance in nearly five years. Many economists had forecast that growth would slip below 2 percent in the first quarter, reflecting a big pullback by consumers after a torrid pace of spending in the fourth quarter. Consumer spending, which accounts for 70 percent of economic activity, decelerated sharply from a 4 percent growth rate in the fourth quarter to a 1.1 percent pace in the first quarter. Government spending grew at a 1.2 percent rate, down from a gain of 3 percent in the fourth quarter, as spending by state and local governments slowed. Housing construction, which had surged in the fourth quarter after two quarters of declines, was flat in the first three months of this year.

Source: ABC News April 27, 2018 12:33 UTC