US first quarter growth slumps, despite high employment rate  

The US economy reported of a significant slump in its growth in its first quarter, marking the weakest level in three years. The reports contributed the dip to the cut in consumer spending, although the economy is expected to revive with a growth in business investments as an impact of the recent tax cut by the US administration along with a growth in the wage rate as suggested by the recent policy measures by Trump. 

With a rough start to the fiscal, the Trump government may have a tough time in achieving its target growth rate of three per cent. The gross domestic product of the nation grew by a mere 0.7 per cent on the annual basis, even as the government spent a lesser amount on defense in comparison to other fiscal quarters. The economy's performance in this quarter is at its lowest since the first quarter of 2014.    

However, the economy witnessed a positive ascend on the front of wages, as the wages in the first quarter grew the fastest in a period of 10 years and the labour market neared full employment. Moreover, the business investment on equipment was the highest since the third quarter of 2015.