US economy grows at modest 2.4pc THE US economy grew at a modest 2.4 per cent annual rate from January to March, slightly slower than initially estimated. Consumer spending was stronger than first thought, but businesses restocked more slowly and state and local government spending cuts were deeper. The Commerce Department says economic growth in the first quarter was only marginally below the 2.5 per cent rate originally estimated. That's still much faster than the 0.4 per cent growth during the October-December quarter. Economists believe growth is slowing to around a 2 per cent rate in the April-June quarter, as the economy adjusts to federal spending cuts, higher taxes and further global weakness. Still, many say the decline may not be as severe as once thought because solid hiring, surging home prices and record stock gains should keep consumers spending.