The US economy grew at its slowest pace in two years during the first three months of 2016, raising questions over the durability of its seven-year expansion at a time of global uncertainty.
Gross domestic product rose 0.5 per cent — less than half the rate of the previous quarter — thanks to falling corporate investment and lower exports. The numbers were also held back by a deceleration in consumer spending growth, despite rising personal incomes.
The figures reflect a cautious mood after turbulent global economic and financial conditions early in the year. They will strengthen calls for the Federal Reserve to tread carefully before lifting interest rates again. The central bank raised rates for the first time in almost a decade last December. The Fed this week left policy unchanged but did not give a firm signal as to when it next expects to tighten monetary policy.