Energy prices held back growth in first quarter

[Bill USA]

http://finance.yahoo.com/news/Energy-prices-held-back-apf-4054982359.html?x=0

WASHINGTON (AP) -- High gasoline prices, government budget cuts and weaker-than-expected consumer spending caused the economy to grow only weakly in the first three months of the year.

The Commerce Department estimated Thursday that the economy grew at an annual rate of 1.8 percent in the January-March quarter. That was the same as its first estimate a month ago.

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Growth is expected to improve modestly in the second half of 2011 as stepped-up hiring helps stimulate consumer and business spending. Companies are also benefiting this year from a tax break that lets profitable businesses write off large capital expenditures right away rather than gradually.

But economists caution that their brighter outlook could be derailed if oil prices head higher or if financial markets are jolted by Europe's debt crisis or a failure by Congress to raise the government's borrowing authority this summer.
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WE need to cut gasoline demand/consumption .... preferably not by slowing the economy to the point of killing off the modest recovery we got going. That would certainly work but wouldn't it be better to do it some other way?

[bemildred]

1. Amongst other (more important) things.

I mean, I'm sure having $10 a barrel oil back would be a big help, but is that really the cause?