GDP growth upgraded, still slow in 1st quarter

The gross domestic product — the broadest gauge of the economy — expanded in the January-March quarter at a 1.2 percent annual rate, the government said Friday.

The government’s upgraded estimate of first-quarter growth reflected new-found strength in consumer spending, business investment and state and local government spending.

Consumer spending continues to expand with job and wage gains, and business investment is picking up, especially for energy-related industries.

After the expected rebound this spring, though, analysts generally foresee growth falling back to an annual rate of 2 to 2.5 percent in the second half of the year — the same modest pace that has prevailed for nearly all the eight years of this economic recovery, the slowest expansion in the post-World War II period.

During the campaign, Trump bemoaned the economy’s weak growth and blamed what he called the Obama administration’s failed policies.

Many experts have dismissed the notion that the economy can achieve a consistent annual growth rate of at least 3 percent at a time of sluggish worker productivity, an aging workforce and slower spending by consumers — on top of Trump’s proposed spending cuts to education, research and social programs.