July 28 (Bloomberg) -- The U.S. economy grew at an annual rate of 2.5 percent last quarter, less than half the pace of the previous three months, as companies and consumers reined in spending.
The first estimate of the quarter's gross domestic product, the value of all goods and services produced in the U.S., compares with a 5.6 percent gain in the first three months of the year, the Commerce Department reported today in Washington.
Bonds rallied and the dollar dropped on speculation the weaker-than-expected expansion will persuade the Federal Reserve to suspend its two-year run of interest-rate increases. Futures traders put the probability of a move when policy makers meet next month at 28 percent, down from about 90 percent last week.
The first estimate of the quarter's gross domestic product, the value of all goods and services produced in the U.S., compares with a 5.6 percent gain in the first three months of the year, the Commerce Department reported today in Washington.
Bonds rallied and the dollar dropped on speculation the weaker-than-expected expansion will persuade the Federal Reserve to suspend its two-year run of interest-rate increases. Futures traders put the probability of a move when policy makers meet next month at 28 percent, down from about 90 percent last week.
This entry was posted
on Friday, July 28, 2006 at 7:52 AM.
