GDP Expands at Slowest Rate in Four Years

The U.S. economy grew at its slowest pace in four years in the first quarter, as the housing slump continued and the trade deficit expanded, the Commerce Department said Friday.

The gross domestic product growth rate for the quarter was 1.3%, following a 2.5% rate in the fourth quarter of last year, Commerce said.

GDP growth fell short of the 1.8% level predicted by analysts, Bloomberg reported. Consumer spending, which accounts for about two-thirds of GDP, expanded at a 3.8% annual rate, down from 4.2% in the fourth quarter.