Real domestic product increased at an annual rate of just 1.3 percent in the first quarter, the slowest since first quarter 2003, according to advance estimates released Friday by the U.S. Bureau of Economic Analysis.
Fourth quarter growth was 2.5 percent.
The soft housing market continues to be the primary drag on overall growth. Residential fixed investment decreased 17 percent in first quarter versus almost 20 percent the quarter before. Personal consumption expenditures increased 3.8 percent, down from 4.2 percent in fourth quarter. Durable goods expenditures rose 7.3 percent, compared with a 4.4 percent increase the previous period. Nondurable goods expenditures increased 2.9 percent versus 5.9 percent.
Nonresidential fixed investment rose 2 percent versus 3.1 percent in the previous quarter. Investments in nonresidential structures were up 2.2 percent versus 0.8 percent. Equipment and software purchases rose 1.9 percent versus 4.8 percent.
Exports of goods and services dipped 1.2 percent, in contrast to a 10.6 percent increase in fourth quarter. Imports of goods and services, which are subtracted from GDP, rose 2.3 percent versus 2.6 percent.
The Bureau emphasized that advance estimates are based on incomplete data and subject to further revision. More comprehensive data will be released on May 31.