The U.S. economy expanded less than forecast in the first quarter as a smaller contribution from inventories overshadowed the biggest gain in consumer spending in more than a year. Gross domestic product, the value of all goods and services produced in the U.S., rose at a 2.2 percent annual rate, Commerce Department figures showed today in Washington. That followed a 3 percent pace in the prior quarter and compared with the 2.5 percent median forecast of economists surveyed by Bloomberg News. Household purchases, which account for about 70 percent of the economy, increased 2.9 percent, exceeding projections. (full story)