Economy grows at strong 5.4% rate; housing sales fall

Thursday, May 25, 2000 | 11:06 a.m.

THE ASSOCIATED PRESS

WASHINGTON -- The supercharged U.S. economy, powered by brisk consumer and government spending, grew at a robust 5.4 percent annual rate during the first three months of 2000, the Commerce Department said today.

The January-through-March increase in the gross domestic product, the nation's total output of goods and services, followed the fourth quarter's 7.3 percent rate of growth, the best showing in nearly 16 years.

In a second report, higher mortgage rates helped drive down sales of existing homes by an unexpected 6.2 percent in April to a seasonally adjusted rate of 4.88 million, the biggest drop since January, the National Association of Realtors said.

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