The Commerce Department said the U.S. economy expanded faster than previously estimated in the first quarter, though consumer spending and a key measure of underlying demand were revised lower.
By yourNEWS Media Newsroom
The U.S. economy grew faster than previously reported during the first quarter of the year, according to revised Commerce Department data released Thursday.
Gross domestic product increased at a 2.1% annual rate from January through March, the government said. The figure is adjusted for inflation and seasonal factors.
The new estimate marks the government’s third and final monthly revision for first-quarter economic growth and represents a significant upgrade from earlier readings.
The stronger headline number was driven largely by a lower estimate for imports. Because imports are subtracted from GDP, a smaller import figure raises the overall growth calculation.
The report also showed weaker household demand than previously estimated. Consumer spending, a major driver of the U.S. economy, was revised down to a 0.5% annual growth rate. That was the slowest pace of consumer spending growth in four years.
Another closely watched measure of domestic demand also softened. Final sales to private domestic purchasers rose at a 1.7% annualized rate, down from the earlier estimate of 2.4%.
That measure excludes government spending, inventory changes and international trade, making it a gauge of private-sector demand inside the U.S. economy. It had increased at a 1.8% pace in the fourth quarter.
The revised figures show a mixed first-quarter picture: stronger overall GDP growth, but weaker consumer spending and softer underlying private demand.
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