US GDP growth of 1.8% disappoints market

The US economy grew at a worse than expected 1.8% in the first quarter, unchanged from April's first reading, the US Commerce Department has confirmed.

Figures from the Commerce Department show the world's largest economy grew at 1.8% in the three months to end of March. The second estimate is below expectations, with markets pencilling in a revision upwards to 2.2% prior to the release. Growth in the US also remains below the final reading in 2010, when the economy expanded by 3.1%. UK shares immediately dropped on the news, with the FTSE 100 falling from 5,910.21 just prior to the release to 5,891, giving up half of the day's gains.