Washington, D.C – America’s economy slowed to a sluggish 1.8 percent annual growth rate in the first quarter of 2011 according to data released today by the Bureau of Economic Statistics. The figure fell significantly below the pre-announcement market expectation of 2.6 percent growth and reflects a nearly 60 percent decline from fourth quarter growth in 2010.    

"Today’s GDP report is a flashing yellow warning light to President Obama and congressional Democrats about their failed economic policies of higher spending, regulation, health care and energy prices," said U.S. Congressman Kevin Brady of Texas, vice chairman and top Republican on the Joint Economic Committee. "Washington clearly remains the single biggest obstacle to America’s recovery, and until we restore business confidence and business investment we won't see the job growth Americans deserve."

The deceleration in growth compared to the fourth quarter of 2010 reflected a sharp uptick in imports and a slower growth in both personal consumption expenditures and business investment in buildings, equipment, and software.

“The sharp drop in private business investment to an anemic annual rate of 1.8 percent is particularly disappointing,” said Representative Brady. “Private sector spending, not government spending, drives growth in payroll employment,” he said. “Reducing government spending now will spur our private job creators to make the kinds of investments that lead to economic growth and jobs for out of work Americans.”

Contact: Tracee Evans

(202) 374-9377