Economy Grows by one Percent in First Quarter

June 26, 2008 11:35:12 AM PDT
The economy turned in a better performance in the first three months of this year, due mostly to stronger sales of U.S. products overseas. 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.