U.S. First-Quarter GDP Revised To Show Slight Contraction

The U.S. economy contracted slightly in the first quarter. The economy struggled with bad weather, a strong dollar, spending cuts in the energy sector and disruptions at West Coast ports. There are signs, however, that growth is accelerating in the second quarter as the temporary drag from unusually heavy snowfalls and the ports dispute fade. Retailers reported strong sales in May and employers stepped up hiring. Housing is also firming. The Commerce Department said on Wednesday gross domestic product fell at a two-tenths percent annual rate in the January-March quarter, better than the seven tenths of one percent contraction rate it reported last month.