Official figures show that the US economy grew at its weakest rate in more than four years during the opening three months of this year as businesses sold off inventories and Americans imported more foreign goods.
The Commerce Department revised down its estimate for first-quarter growth to an annual rate of 0.6% from 1.3% a month ago.
It was the slowest rate of growth since the fourth quarter of 2002 when the economy edged ahead at a 0.2% rate.
Although the first-quarter growth rate was cut in half, some key components of GDP showed continuing resilience that may foster a healthier pace of expansion later in the year.
Personal consumption spending, which fuels two-thirds of national economic activity, rose at an upwardly revised rate of 4.4% instead of 3.8% estimated a month ago.
Businesses cut inventories at a $4.5 billion annual rate during the first quarter, the department said - a sharp reversal from its estimate a month ago that inventories had increased by $14.8 billion.
The reduction in inventories pulls growth down for the quarter but also leaves room for companies to expand output if consumer spending remains strong.
Imports increased more strongly during the first quarter than previously thought, which also helps slow the GDP growth rate. Business investment was revised up modestly, with non-residential investment rising at a 2.9% rate rather than 2% and spending on computer equipment and software up 2% instead of 1.9%.
A prices measure favoured by Federal Reserve policy-makers - personal consumption spending excluding food and energy - rose at a 2.2% rate in the first quarter, unchanged from the estimate made a month ago.
The housing sector remained a drag on the overall economy, though slightly less so than previously thought. The department said spending on new homebuilding shrank at a 15.4% rate during the first quarter instead of 17% it estimated a month ago - a sixth straight quarter of declining spending on homebuilding.
