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The Honolulu Advertiser
Posted on: Thursday, May 1, 2008

Economy limps along at 0.6% growth

Associated Press

WASHINGTON — The bruised economy limped through the first quarter, growing at just a 0.6 percent pace as housing and credit problems forced people and businesses to hunker down.

The nation's economic growth from January through March was the same as in the final three months of last year, the Commerce Department reported yesterday. The statistic did not meet what economists consider a definition of a recession, which is a contraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if slightly.

Many analysts were predicting the gross domestic product would weaken a bit more — to a pace of just 0.5 percent — in the first quarter. Earlier this year, some thought the economy would actually lurch into reverse during the opening quarter. Now, they say they believe that will likely happen during the current April-to-June period.

Gross domestic product measures the value of all goods and services produced in the U.S. and is the best measure of economic health. Voters are keenly worried about the country's economic problems and so are politicians — in Congress, in the White House and on the campaign trail.