Economics

U.S. First-Quarter GDP Growth Revised Down to 2% on Services

Nathan Sheets of PGIM Fixed Income and Bloomberg Intelligence’s Gina Martin Adams examine the latest eco data.(Source: Bloomberg)
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The U.S. economy expanded in the first quarter at a slower pace than previously estimated, reflecting downward revisions to spending on services and to inventory investment, according to Commerce Department data released Thursday.

The smaller gain in first-quarter services spending primarily reflected fewer outlays by non-profits for health care. The downward revision to inventories was attributable to retail stockpiles, while annual updates to government trade data showed fewer exports and more imports during the quarter, according to Commerce.