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Economy Has Worst Growth Since 2002
May 31, 10:06 AM (ET)
By JEANNINE AVERSA
WASHINGTON (AP) - The economy nearly stalled in the first quarter with growth slowing to a pace of just 0.6 percent. That was the worst three-month showing in over four years.
The new reading on the gross domestic product, released by the Commerce Department Thursday, showed that economic growth in the January-through-March quarter was much weaker. Government statisticians slashed by more than half their first estimate of a 1.3 percent growth rate for the quarter.
The main culprits for the downgrade: the bloated trade deficit and businesses cutting investment in supplies of the goods they hold in inventories.
"We are still keeping our head above water - barely," said economist Ken Mayland of ClearView Economics.
http://apnews.myway.com/article/20070531/D8PFDD6O0.html
May 31, 10:06 AM (ET)
By JEANNINE AVERSA
WASHINGTON (AP) - The economy nearly stalled in the first quarter with growth slowing to a pace of just 0.6 percent. That was the worst three-month showing in over four years.
The new reading on the gross domestic product, released by the Commerce Department Thursday, showed that economic growth in the January-through-March quarter was much weaker. Government statisticians slashed by more than half their first estimate of a 1.3 percent growth rate for the quarter.
The main culprits for the downgrade: the bloated trade deficit and businesses cutting investment in supplies of the goods they hold in inventories.
"We are still keeping our head above water - barely," said economist Ken Mayland of ClearView Economics.
http://apnews.myway.com/article/20070531/D8PFDD6O0.html