Investing.com - The U.S. economy expanded significantly below expectations in the first three months of 2014, dampening optimism over the strength of the economy, official preliminary data showed on Wednesday.
In a report, the Bureau of Economic Analysis said gross domestic product grew at a seasonally adjusted annual rate of 0.1% in the first quarter, missing expectations for growth of 1.2%. The U.S. economy expanded by 2.6% in the preceding quarter.
The data showed personal consumption grew 3% in the three months ended March 31, above expectations for a 1.9% gain, but down from 3.3% in the preceding quarter. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
The GDP price index rose by 1.3% in the first quarter, below expectations for a 1.6% increase and down from 1.6% in the preceding quarter.
Following the release of the data, the U.S. dollar added to losses against the euro to trade higher, with EUR/USD rising 0.4% to trade at 1.3867, compared to 1.3847 ahead of the data.
Meanwhile, U.S. stock index futures turned lower. The Dow indicated a loss of 0.1% at the open, S&P 500 futures pointed to a decline of 0.2%, while the Nasdaq 100 indicated a drop of 0.4%.