The economy in the U.S. grew less than forecast in the first quarter as a drop in defense spending outweighed the biggest increase in consumer spending in two years. Gross domestic product rose at a 2.5 percent annual rate, lower than forecast, after a 0.4 percent fourth-quarter advance, Commerce Department figures showed today in Washington. The median estimate of 86 economists surveyed by Bloomberg called for a 3 percent gain. Consumer spending, the biggest part of the economy, climbed by the most since the fourth quarter of 2010. A boost to wealth from rising stock and home prices combined with a reduction in ... (full story)