GDP Grew at 3.1% in First Quarter, Commerce Reports

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he U.S. economy grew at an annual rate of 3.1% in the first quarter, down from a revised fourth-quarter rate of 3.8%, the Commerce Department said Thursday.

The gross domestic product rate was below the 3.5% predicted by economists, Bloomberg reported.

GDP is the total value of goods and services produced in the United States. The total amount rose to $11.08 trillion when annualized and adjusted for inflation.

The personal consumption index, excluding food and energy, rose at a 2.2% annual rate, the fastest since the fourth quarter of 2001, Bloomberg reported. It had increased by 1.7% in the fourth quarter of last year.

Consumer purchases, which account for more than two-thirds of the economy, grew at a 3.5% annual rate after rising 4.2% in the fourth quarter.

The economy grew at a 4.4% rate in 2004, the strongest since 1999.