U.S. economy slows during first quarter of 2015
The nation’s economic growth slowed during the first quarter, as the gross domestic product expanded by a mere 0.2% seasonally adjusted annual rate, the Commerce Department
said Wednesday. The 0.2% gain is the smallest gain since the same time one year ago, when the nation’s economy declined by 2.1%. This minimal growth during the first quarter of 2015 is also a decline from a 2.2% growth during the previous quarter.
There were a number of factors that played a role in the slowed growth. These factors included bad weather, strong U.S. Dollar, lower oil prices and weak global demand. U.S. consumer spending slowed during the quarter but remained positive to help keep the GDP growth positive. The single biggest impediment on the economy was the drop off in exports of goods due to the strong dollar. Last month the U.S. dollar reached a 12 year high versus the euro. Low oil prices continued which caused the U.S. energy industry to slow investment and caused companies to lay off workers.
Looking back to 2014 the U.S. economy contracted by 2.1% during the first quarter, but recovered and had solid growth over the remainder of 2014. Will 2015 follow a similar course to 2014, or is quarter one of 2015 the start of an economic downward trend?
To learn more about other economic indicators visit www.commerce.gov/economicindicators
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