CCTV9英语新闻：US 2016 Q1 GDP growth at 0.5%

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WASHINGTON, April 28 (Xinhua) -- The U.S. economy grew at an annual rate of 0.5 percent in the first quarter of this year, being pulled back by slowing consumption, the Commerce Department said Thursday.

 

The growth was lower than the 1.4 percent increase in the previous quarter.

 

The deceleration reflected a larger decrease in non-residential fixed investment, a deceleration in consumer spending and a decline in federal government spending, said the Commerce Department.

 

Consumer spending, which accounts for about 70 percent of the U.S. economy, increased 1.9 percent in the first quarter, lower than the 2.4 percent rise in the previous quarter.

 

Weighed down by further sharp contraction in investment in oil-related industries, non-residential investment fell 5.9 percent in the quarter. Exports decreased 2.6 percent in the first quarter, a further decline from the 2 percent drop in the previous quarter.

 

Jason Furman, chairman of the Council of Economic Advisers, said in a statement on Thursday that strong growth in residential investment boosted real gross domestic product (GDP) growth in the quarter, but weakness in business investment and net exports, which were exacerbated by weak foreign demand and low oil prices, weighed on growth.

 

The U.S. Federal Reserve on Wednesday kept its benchmark short-term interest rate unchanged for a third meeting in a row while giving little indication on the timing of its next rate hike.

 

The Fed acknowledged the weakness in the economy, but pointed out some positive points in the meantime, such as robust labor market data, solid growth in household income, high consumer sentiment and continuous improvement in the housing market.

 

The central bank has avoided stating explicitly whether these risks were balanced or tilted to one side in the policy statements for the past three consecutive meetings, leaving investors unclear when it will raise interest rates.

 

Fed Chair Janet Yellen said last month that it was appropriate for the central bank to "proceed cautiously" in adjusting policy, citing the risks to the U.S. economic outlook from global development.