GDP Grew at a Newly Revised 1%

The broadest measure of economic health, the gross domestic product, grew at an annual rate of just 1%, revised down from a previously reported 1.1%, the Commerce Department said. After-tax profits of U.S. corporations fell 4.3%, reflecting the toll of the economic slowdown and higher energy prices, the report showed. That was the first decline since the fourth quarter of 1998, when profits dropped 1.6%. The GDP growth was the worst showing since a 0.8% growth rate in the second quarter of 1995. A drop in spending on big-ticket items by businesses and consumers accounted for most of the weakness. Separately, the Labor Department said new claims for state unemployment insurance fell by 20,000 to 362,000 last week.