The U.S. economy grew at a sluggish 0.6 percent annual rate in the first quarter, the weakest three-month stretch in more than four years and far slower than the 2.5 percent pace in the fourth quarter last year, Bloomberg News reported. A housing slump, a widening trade deficit and a reduction in businesses’ inventories were major factors in the slowdown.

Economists estimated at the beginning of the month that the gross domestic product would grow at a 1.3 percent rate. However, the trade deficit widened to an annual pace of $611.8 billion, subtracting 1 percentage point from the GDP, and companies reduced stockpiles at a $4.5 billion rate. The housing sector subtracted 0.9 percentage point from growth as home construction fell at an annual rate of 15.4 percent last quarter.

Economists believe that the first quarter could be the low point for the year. Consumer spending, which accounts for about 70 percent of the economy, was up to an annual rate of 4.4 percent, a sign that economic expansion could continue.