Economy Continues To Grow but at Slower Pace

Washington, DC, April 27, 2012 -- Gross domestic product rose at a 2.2% annual rate in the first quarter after a 3% pace in the prior quarter, according to the Commerce Department.

The growth was less than economists' expectations of 2.7% growth.

However, household spending, which makes up roughly 70% of the economy, expanded 2.9%, topping forecasts.

The biggest negative surprise was a drop in business spending.

Although the increase in GDP in the first quarter was disappointing, the report had some positives mixed in. For instance, in the past four quarters, the economy has risen 2.1%, the biggest year-over-year increase since the first quarter of 2011.

Consumer spending added 2 percentage points to GDP.

Spending on durable goods rose 15.3% in the first quarter after a 16.1% gain in the prior three months.

Real disposable personal income increased 0.4%, down from a 1.7% gain in the fourth quarter.