GDP Growth Revised Down to 3%

The Commerce Department said GDP rose at a seasonally adjusted 3% annual rate to begin the year after reporting a 3.2% rise in its advance estimate.
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WASHINGTON (

TheStreet

) -- Economic growth in the first quarter was a little weaker than first believed, according to a second evaluation provided by the government Thursday.

The Commerce Department said gross domestic product rose at a seasonally adjusted 3% annual rate to begin the year. This is the second estimate provided by government statisticians. In its first read, the department said the economy grew at a slightly more robust 3.2%. Still, economists were looking for GDP to improve in the second estimate to 3.3%, according to consensus figures provided by

Briefing.com

.

GDP rose at a 5.6% pace during the fourth quarter helped primarily from slashed inventories, which is considered a net positive in GDP parlance.

The government will provide yet another revised estimate on first-quarter economic growth on June 25.

A jump in

consumer spending helped power growth in the first quarter. The revision helped verify that trend. But after looking at more complete data following its initial assessment, the government revised its spending figures just lower, and boosted import numbers, which resulted in the 0.2 percentage point dip, or $6.5 billion, in this latest estimate.

--Written by Sung Moss in New York