The economy limped ahead at just a 0.7 percent pace in the first quarter, the slowest in more than four years. Some businesses clamped down on spending, given the uncertainties about the severity of the housing slump.

The Commerce Department’s new reading on gross domestic product for the January through March period, released Thursday, was a slight upgrade from the 0.6 percent growth rate estimated a month ago. But it fell short of economists’ forecasts for a 0.8 percent pace and may turn out to be the weakest point for the economy this year.

“Companies were really watching their cash,” said Oscar Gonzalez, economist at John Hancock Financial Services.

Gross domestic product measures the value of all goods and services produced in the United States. It is considered the best barometer of the country’s economic standing. Although businesses turned cautious, consumer spending remained sturdy, preventing the economy from stalling out.

Even though the economy slowed in the first quarter, an inflation gauge picked up speed.

The measure tied to the GDP report and closely watched by the Federal Reserve showed that core prices – excluding food and energy – rose at a rate of 2.4 percent in the first quarter. That was higher than previously estimated and faster than the 1.8 percent pace in the fourth quarter. (AP)