The U.S. economy accelerated at the beginning of the year, but folks are urged not to get too excited. Economists aren't very optimistic that trend will continue in the months ahead.
Gross domestic product -- the broadest measure of economic output -- rose at a 2.5% annual pace in the first three months of the year, driven largely by a pickup in consumer spending the Commerce Department said.
Consumer spending, which alone accounts for roughly two thirds of GDP, rose at a 3.2% annual pace.
That boost largely came from spending on services, including spending on housing and utilities, which rebounded after slumping following Hurricane Sandy in the prior quarter. This March was also the coldest since 2002, a weather pattern that boosted the demand for heating.
Consumer spending on durable goods like autos also helped boost the economy, but to a lesser extent.
On the business side, investment in equipment and software added slightly to growth. An even bigger boost, however, came as businesses restocked their shelves and warehouses after drawing down their inventories in the fourth quarter.
Meanwhile, cuts in government spending dragged on the economy in the first quarter and that's likely to continue through the rest of the year.
Economic growth isn't likely to be as strong in the second quarter. Other economic data already shows the economy may have lost some steam starting in March.
Job growth slowed, retail sales slumped and the manufacturing sector showed signs of weakness.
Overall, the first-quarter GDP report was a bit of a letdown. Economists had been expecting the economy to grow at an even stronger rate of 2.8%.
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