(The Canadian press) WASHINGTON _ The U.S. economy grew at an annual rate of 1.8% in the first three months of the year, significantly slower than first thought. The steep revision was mostly because consumers spent less, suggesting higher taxes are having a deeper impact on economic growth.
The Commerce Department revised the annual growth rate for the January -March quarter down from its last estimate of a 2.4%. The rate was still faster than the 0.4% rate in the October-December quarter.
Economists had thought growth in the April-June quarter would be 2% or less, although the revision will likely change those estimates. They had also expected growth to strengthen in the second half of this year.