Economy Grows by one Percent in First Quarter

WASHINGTON (AP) - June 26, 2008 The Commerce Department reports the gross domestic product grew at an annual rate of one percent -- a slight improvement from the previous estimate of nine-tenths percent for the January-to-March quarter.

But the tiny improvement points to a fragile economy, shaken by housing, credit and financial problems. Analysts say more normal growth would be along the lines of 2.5 to 3 percent.

Still, the figure shows the economy posting an improvement over the feeble six-tenths-percent growth rate in the final three months of 2007.