The Ottumwa Courier

AP National

April 30, 2014

US economy slowed to 0.1 percent growth rate in Q1

WASHINGTON (AP) — The U.S. economy slowed drastically in the first three months of the year as a harsh winter exacted a toll on business activity. The sharp slowdown, while worse than expected, is likely to be temporary as growth rebounds with warmer weather.

The economy's growth slowed to a barely discernible 0.1 percent annual rate in the January-March quarter, the Commerce Department said Wednesday. That was the weakest pace since the end of 2012 and was down from a 2.6 percent growth rate in the October-December quarter.

Consumer spending grew at a 3 percent rate. But that gain was dominated by a 4.4 percent rise in spending on services, reflecting higher utility bills. Spending on goods barely rose. Also dampening growth were a drop in business investment, a rise in the trade deficit and a fall in housing construction.

The scant 0.1 percent increase in the gross domestic product, the country's total output of goods and services, was well below the 1.1 percent rise economists had been predicting. The last time the quarterly growth rate was so slow was in the final three months of 2012, when it was also 0.1 percent.

A variety of factors held back growth. Business investment fell at a 2.1 percent rate, with spending on equipment plunging at a 5.5 percent annual rate. Residential construction fell at a 5.7 percent rate. Housing was hit by winter weather and by other factors such as higher home prices and a shortage of available houses.

A widening of the trade deficit, thanks to a sharp fall in exports, shaved growth by 0.8 percentage point in the first quarter. Businesses also slowed their restocking, with a slowdown in inventory rebuilding reducing growth by nearly 0.6 percentage point.

Also holding back growth: A cutback in spending by state and local governments. That pullback offset a rebound in federal activity after the 16-day partial government shutdown last year.

Text Only
AP National
  • Analysis: Clinton impeachment shadows GOP lawsuit WASHINGTON (AP) — The last time Republicans unleashed impeachment proceedings against a Democratic president, they lost five House seats in an election they seemed primed to win handily. Memories of Bill Clinton and the campaign of 1998 may help expl

    July 28, 2014

  • After six weeks, finally a deal on VA health care WASHINGTON (AP) — A bipartisan deal to improve veterans health care would authorize at least $15 billion in emergency spending to fix a veterans health program scandalized by long patient wait times and falsified records covering up delays. Congressi

    July 28, 2014

  • US: Russia has fired rockets into Ukraine WASHINGTON (AP) — Stepping up pressure on Moscow, the U.S. on Sunday released satellite images it says show that rockets have been fired from Russia into neighboring eastern Ukraine and that heavy artillery for separatists has crossed the border. The

    July 28, 2014

  • Trial opening over video of Oklahoma City bombing OKLAHOMA CITY (AP) — A Salt Lake City attorney is arguing in a lawsuit that the FBI has video of the Oklahoma City bombing that shows a second person was involved. The case is at the heart of Jesse Trentadue's quest to explain his brother's mysteriou

    July 28, 2014

  • Aid Group: Two Americans have Ebola in Liberia BOONE, N.C. (AP) — Two American aid workers have tested positive for the Ebola virus while working to combat an outbreak of the deadly disease at a hospital in Liberia, a relief group official said. Ken Isaacs, a vice president of Samaritan's Purse,

    July 28, 2014

  • Air travel a leap of faith for passengers WASHINGTON (AP) — Airline travel requires passengers to make a leap of faith, entrusting their lives to pilots, airlines, air traffic controllers and others who regulate air travel. Even after a week of multiple tragedies in worldwide aviation, "Ther

    July 25, 2014

  • Pot may be legal, but homeowner agreements can ban DENVER (AP) — Pot may be legal in some states — but the neighbors don't have to like it. Marijuana and hemp have joined wacky paint colors and unsightly fences as common neighborhood disputes facing homeowners' associations. Though a few HOAs have wi

    July 25, 2014

  • Central American leaders convening at White House WASHINGTON (AP) — President Barack Obama will urge Central American leaders to help slow the influx of unaccompanied children fleeing their countries for the United States, even as Congress remains deeply divided over proposals to stem the crisis at

    July 25, 2014

  • Little sunlight as Obama raises super PAC dollars WASHINGTON (AP) — For years President Barack Obama railed against the surge of unlimited spending flowing into American political campaigns, arguing that average voters were being shut out of a secretive system that lets special interests bankroll el

    July 25, 2014

  • Prosecutor: Man faces charges in hospital shooting DARBY, Pa. (AP) — A man who authorities say fatally shot a caseworker at a hospital complex near Philadelphia and was then shot by his psychiatrist remains listed in critical condition. District Attorney Jack Whelan said Richard Plotts would be arrai

    July 25, 2014

Obituaries
Record
Facebook
AP National