GDP growth slows in first quarter

WASHINGTON -- The economy grew at a slower pace than forecast in the first quarter as government spending declined by the most since 1983.

Gross domestic product rose at a 1.8 percent annual rate from January through March after a 3.1 percent pace in the last three months of 2010, the Commerce Department said Wednesday. Economists had projected 2 percent growth.

To keep spurring the expansion, Federal Reserve policy makers said Wednesday they'll complete their $600-billion round of stimulus through June.

While slower than the previous three months, a reflection of higher gasoline prices, consumer spending climbed more than projected in the first quarter.

For all of 2010, the U.S. economy grew 2.9 percent, the most in five years.-- Bloomberg News