Economy grew feeble 0.5% in the first quarter

The U.S. economy nearly stalled early this year as consumer spending growth slowed, adding to the long-standing drags posed by sluggish exports and business investment.

For more than a year, the listless global economy and strong dollar have hobbled exports and business investment, while the slump in oil prices pummeled outlays on drilling-related equipment. The nation’s gross domestic product grew at a seasonally adjusted annual rate of 0.5% in the first quarter, the Commerce Department said Thursday, the weakest performance in two years.

Economists surveyed by Bloomberg expected 0.6% growth. On the heels of a tepid 1.4% expansion late last year, the economy has turned in feeble showings for two consecutive quarters.

Consumers more than made up for those obstacles by opening their wallets in 2015. Households benefit from low gasoline prices, strong job growth and reduced debt. Early this year, auto sales slowed and heating demand flagged as a result of unseasonably warm weather.

Consumer spending added to growth in the first quarter, rising 1.9%, but that was less than the 2.4% pace recorded in the fourth quarter.

Exports fell 2.6% after sliding 2% in the previous quarter while imports rose, widening the trade deficit. A weak global economy and strong dollar have hurt U.S. shipments, while the muscular greenback aids imports by making them cheaper for US consumers.

Business investment declined 5.9% amid the sluggish exports and oil downturn. Equipment outlays, a proxy for capital spending, plunged 8.6%.