GDP Grows at 1.9% Rate

The economy grew at a faster pace than estimated in the first quarter, the Commerce Department said Thursday, boosted by an increase in personal expenditures.

GDP growth was revised up to 1.9% from an advance estimate of 1.6%, the government said. Personal spending rose 2%, compared with estimates of 1.4%. Weakening business-investment conditions offset those gains, however. Equipment and software expenditures decreased 6.3%, more than initial forecasts of a 4.4% drop.

The GDP purchase price index held steady at 3.6%.

The market was heading higher on the better growth forecast. In the fourth quarter, GDP rose 1.4%.

Separately, the Labor Department reportedly said Thursday that that first-time claims for unemployment insurance fell by 9,000 to 424,000 for the week ended Saturday. Economists had expected a drop of 8,000 claims.

More from Markets

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)