U.S. Growth Not So Bad After Revisions to Spending, Investment
U.S. 1Q GDP Revised Upwards to 1.2% Growth
The U.S. economy’s first quarter wasn’t so miserable after all, as consumption contributed more to growth and business investment was even stronger than thought, Commerce Department data showed Friday.
While the revisions were more positive than economists generally expected, the report reinforces that 2017 got off to a relatively weak start, a trend that’s plagued the U.S. economy for several first quarters. Still, business investment was even brighter than previously estimated, thanks to fresh data on construction spending and companies’ research and development expenses. Economists and Federal Reserve policy makers are betting on a second-quarter rebound with the consumer leading the way, as Americans remain confident amid steady job growth and the promise of fatter paychecks.