This is the government's third and final estimate of GDP between January and March. The numbers surprised analysts, who had estimated a slight improvement to a 2.3 per cent growth rate, Efe news reported.
The slowdown in GDP growth during the first quarter reflected a drop in consumer spending, exports, federal, state and local government spending and a drop in fixed residential investment.
Consumer spending, which accounts for nearly two-thirds of GDP in the US, was revised downward from 1 per cent to 0.90 per cent after posting a 4.4 per cent rise in the previous quarter, the Commerce Department said.
Business investment, however, showed a robust increase of 5.8 per cent in equipment purchases, compared to a 5.5 per cent rise in the previous estimate, indicating corporate optimism about the economy.
The first-quarter GDP figures came in far below President Donald Trump's promise to put the country on track for 3 per cent economic growth with tax cuts for businesses and individuals.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
