WASHINGTON -- U.S. economic growth accelerated from January through March, buoyed by the strongest consumer spending in more than two years. The strength offset further declines in government spending that are expected to drag on growth throughout the year.
The Commerce Department says the overall economy expanded at an annual rate of 2.5 percent in the first quarter, rebounding from the anemic 0.4 percent growth rate in the October-December quarter.
Much of the gain reflected a jump in consumer spending, which rose at an annual rate of 3.2 percent. That's the best since the end of 2010. Businesses responded to the greater demand by rebuilding to their stockpiles. And home construction rose further.
But government spending fell, led by another deep cut in federal defense spending.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.