US economy entered 2015 on a weak note

The U.S. economy grew at a disappointing 0.2 percent in the first quarter of the year, as winter weather and weak exports contributed to sluggish growth.

Outside analysts had expected growth of roughly 1 percent for the first three months of 2015, but the Commerce Department reported Wednesday the economy barely gained ground.

{mosads}The government reported that while personal spending and business inventory were up, a decline in exports, state and local government spending, and an increase in imports all contributed to laggard growth.

Jason Furman, chairman of the White House Council of Economic Advisers, blamed the bleak outcome on “tepid foreign demand and harsh winter weather.”

Furman said the first few months of 2015 included “historically harsh winter,” the third coldest in 20 years. Those harsh conditions slowed economic activity as Americans stayed home to keep warm, rather than pumping up consumption and business investment.

He also noted that Americans’ savings appeared mostly due to low energy prices. The growing strength of the dollar across the globe is also weighing on the U.S., making it more difficult for American businesses to export goods.

Given that a decline in exports was a main culprit in the reduced growth, the White House and congressional Republicans used the disappointing data to bolster their case for passing legislation that would allow President Obama to finalize a trade pact with 11 other Pacific nations.

Liberal lawmakers and labor unions fiercely oppose the “fast track” legislation, but Furman said Wednesday’s report shows how the rest of the world affects the U.S. economy directly, “making clear the importance” of the legislation.

House Ways and Means Committee Chairman Paul Ryan (R-Wis.) hit a similar note, saying in a statement the report proved Congress needs to act quickly to enact the legislation.

The weak outlook could weigh on the Federal Reserve’s running debate about when the economy is ready to weather the first interest rate increase in nearly a decade. The Fed will release its latest policy update later Wednesday.