U.S. GDP Growth in First Quarter Revised Up to 1.1% Rate
Source: The Wall Street Journal.
U.S. GDP Growth in First Quarter Revised Up to 1.1% Rate
But overall subdued pace suggests growth remains vulnerable to a new round of global economic turmoil
By Josh Mitchell and Ben Leubsdorf
joshua.mitchell@wsj.com
@JMitchellWSJ
ben.leubsdorf@wsj.com
@BenLeubsdorf
June 28, 2016 8:32 a.m. ET
WASHINGTON—The U.S. economy expanded more than previously thought in the first three months of the year, but the subdued pace overall suggests it remains vulnerable to a new round of global economic turmoil.
Gross domestic product, the broadest measure of goods and services produced across the U.S., grew at a seasonally adjusted annual rate of 1.1% in the first quarter, the weakest pace in a year, the Commerce Department said Tuesday. The agency previously estimated the economy grew at a 0.8% pace. ... Economists surveyed by The Wall Street Journal had expected the latest estimate to show 1% growth.
The main factors behind the upward revision: The U.S. exported more good and services than previously thought during the period. And companies spent more than initially estimated on software and research and development.
But total business investment still declined compared with the prior quarter, falling at the fastest pace since the third quarter of 2009. And spending by everyday Americans—the lifeblood of the world’s largest economy—was weaker than previously thought. Consumer spending in the first quarter grew at the slowest pace in two years, the fresher data showed.
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