U.S. economic growth came in at 0.7% for the first three months of the year, the slowest pace since 2002, the U.S. Commerce Department reported today.

The January-to-March growth was below the 0.8% annual rate economists had been expecting, but above the government’s initial estimate of 0.6%.

Businesses cut their spending on inventories during the quarter, but consumer spending — which accounts for roughly two-thirds of all economic activity — grew at annual rate of 4.2%.

Canada’s economic growth rate for the first quarter came in at an annualized pace of 0.9%. April’s growth figure will be released Friday by Statistics Canada.