Economy picks up slightly in first quarter

The economy plodded ahead at a 0.9 percent pace in the first quarter - slightly better than first estimated - but still underscoring caution on the part of consumers and businesses affected by housing, credit and financial constraints.
In the housing market, builders reduced spending on housing projects by 25.5 percent in the first quarter. However, investment in commercial construction wasn't as weak as the government first estimated, contributing to the upward revision to first-quarter GDP.
Looking ahead, top forecasters at the National Association for Business Economics predict the economy will creep along at a 0.4 percent growth rate during the April-to-June period, which is expected to be the weakest quarter of the year. Growth should pick up to a 2.2 percent pace in the third quarter, energized by the Fed's powerful series of rate reductions and billions of dollars worth of tax rebates to consumers. Source: Real Trends