The US economy expanded at a worse-than-expected 1.3 percent rate in the first quarter, marking the slowest period of growth in four years, the government announced Friday.
Growth in the world's biggest economy weakened notably, amid a widespread housing slump, following an annualized 2.5-percent clip in the prior quarter.
The first snapshot of 2007 growth disappointed most Wall Street analysts who had anticipated growth of at least 1.8 percent.
In the immediate aftermath of the report's release, the euro leapt to a record high against the dollar, which has weakened considerably in recent months, striking 1.3682 dollars as fears mounted about America's economic health.
The bulging US trade deficit with its major trading partners as well as concerns about a widespread housing market downturn have conspired to hobble US growth, analysts said.
US exports fell 1.2 percent in the January-March quarter while imports rose 2.3 percent, contributing to the lower-than-expected reading for US output.
Housing investment acted as a major drag on growth yet again, as such investment declined for a sixth straight quarter, slumping 17 percent compared with a year earlier.
Copyright 2008, by
AFP
. All rights reserved
Euro soars to record against dollar
US economic growth slows dramatically 