U.S. economy weakens more than expected in Q1

WASHINGTON (MarketWatch)
The U.S. economy slowed more than expected in the first quarter, the Commerce Department reported Friday
Real gross domestic product rose at a 2.2% annualized rate in the first quarter, down from a 3.0% increase in the fourth quarter
Economists had expected a stronger 2.7% growth rate
The big story for the first quarter was the slowdown in business spending and inventory investment
The government sector also dampened growth
This weakness was partially offset by stronger consumer spending and export
At the same time as the economy slowed, inflation accelerated
The personal consumption expenditure index rose 2.4% in the first quarter, the fastest pace since the second quarter of 2011
The core personal consumption index rose 2.0% after a 1.4% gain in the fourth quarter