GDP Stumbles During First Quarter

The nation’s economy grew during the first quarter of 2011, but not as much as forecasters had originally predicted.

The 1.8% rate of growth in GDP represented a noticeable decline from the 3.1% rate experienced during the fourth quarter of last year. The figures were announced Thursday by the Department of Commerce.

Continued high unemployment and a steady rise in energy and commodity prices contributed to the weak GDP report. Weekly jobless claims increased during the latter part of April.

Still, the White House called the first quarter numbers encouraging.

“Today’s report shows that the economy posted the seventh straight quarter of positive growth,” said Austan Goolsbee, Chairman of the President’s Council of Economic Advisers.

“These data indicate that the measures put in place by this Administration – such as the payroll tax cut and business incentives for investment – are helping to foster growth,” he added.