WASHINGTON — The economy, weighed down by a bloated trade deficit, grew at a slower pace in the first quarter of the year. The 3.9 percent rate suggested a still-sturdy recovery but raised questions about its strength in the months
WASHINGTON — The economy, weighed down by a bloated trade deficit, grew at a slower pace in the first quarter of the year. The 3.9 percent rate suggested a still-sturdy recovery but raised questions about its strength in the months ahead.
The new reading on the gross domestic product wasn’t as strong as the 4.4 percent growth rate previously estimated for the January-to March quarter. It also was slightly slower than the 4.1 percent pace of the final quarter of 2003. A main culprit to the downward revision was the yawning trade deficit. That shaved 0.7 percentage point off the first-quarter GDP, which was twice as much as estimated a month ago. Consumers also spent more modestly, and businesses didn’t boost spending.
