GDP slows, labor costs up
8:39 a ET
The U.S. economy grew at a 5.4 percent rate in the first quarter, the government said Thursday, below Wall Street forecasts and the fourth quarter's pace, but two key inflation gauges topped economists’ forecasts. The employment cost index jumped 1.4 percent and the GDP price deflator rose 2.7 percent in the quarter -- both above expectations. Bonds edged lower and stock futures tumbled after the data on investor jitters about inflation, pointing to a lower open on Wall Street.
8:39 a ET
The U.S. economy grew at a 5.4 percent rate in the first quarter, the government said Thursday, below Wall Street forecasts and the fourth quarter's pace, but two key inflation gauges topped economists’ forecasts. The employment cost index jumped 1.4 percent and the GDP price deflator rose 2.7 percent in the quarter -- both above expectations. Bonds edged lower and stock futures tumbled after the data on investor jitters about inflation, pointing to a lower open on Wall Street.