Economy Grows at Rate of 4.4%

The economy grew slightly faster than previously thought in the first quarter of this year, fresh evidence of momentum heading into the summer. Higher energy prices, though, could weigh a bit on future growth, some analysts said.

The Commerce Department reported Thursday that gross domestic product from January through March increased at a 4.4% annual rate.

That was an improvement from the 4.2% pace estimated for the quarter a month ago and the 4.1% growth rate registered in the final quarter of 2003.

GDP measures the value of all goods and services produced within the United States. Although the latest reading was just shy of the 4.5% pace that some analysts had forecasted, it nevertheless represented a solid performance.

The Labor Department, meanwhile, reported that new applications for unemployment benefits dropped last week by a seasonally adjusted 3,000 to 344,000, another hopeful sign for a labor market recovery. The four-week average, a less volatile measure, rose to 335,500 from 334,000, the lowest since November 2000.