WASHINGTON, June 25 The U.S. economy grew faster than previously estimated in the first quarter, but consumer spending almost stalled.
Gross domestic product increased at an upwardly revised 2.1% annualized rate last quarter, the Commerce Department’s Bureau of Economic Analysis said in its third estimate of first-quarter GDP on Thursday
Growth was previously reported to have advanced at a 1.6% pace. Economists polled by Reuters had expected that GDP growth would be unrevised at a 1.6% rate. The economy grew at a 0.5% pace in the October-December quarter.
The 0.5 percentage point upgrade to growth last quarter reflected a downward revision to imports, mostly consumer and capital goods. The boost to growth from lower imports was partially offset by a sharp downgrade to consumer spending, which accounts for more than two-thirds of the economy. Growth in consumer spending was slashed to a 0.5% rate from the previously reported 1.4% pace, reflecting downward revisions to outlays on services, including financial services and insurance as well as international travel.