US economy grew 0.2% in Jan-March

The American economy grew at a snail’s pace of just 0.2 per cent in the first quarter of 2015, which the White House attributed to the harsh winter. The news resulted in the New York Stock Exchange opened to a lower note in the morning.

“Economic growth in the first quarter was restrained by factors including tepid foreign demand and harsh winter weather,” Jason Furman, Chairman of the Council of Economic Advisers, White House, said in a statement.

“At the same time, households saved most of their gains from low energy prices. Over the past four quarters, the most persistent and stable componen ts of GDP consumption and fixed investment have grown 3.3 per cent,” he said. “This trend complements the strong pace of job growth and unemployment reduction over the last year.” The Wall Street Journal said economists were expecting the economy to grow one per cent this quarter.

“This is another quarterly number which confirms the long-term slow-growth thesis, but there are good odds we get a bit of a bounce later in the year from stabilised business spending and the housing markets, which are setting up quite promising,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott.