Economics

U.S. Growth Revised Lower by Less Than Expected to 3.1%

Reading reflects upward revisions on consumption, exports
Below headline number, underlying demand suggests weakness

Amherst Pierpont’s Stephen Stanley and Morgan Stanley’s Mike Wilson examine first-quarter U.S. economic growth.(Source: Bloomberg)

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By Reade Pickert

May 30, 2019 at 12:30 PM UTC

Updated on

May 30, 2019 at 2:10 PM UTC

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U.S. economic growth last quarter was revised down by less than expected amid stronger consumption and exports than initially reported, suggesting the expansion was on relatively firm footing before President Donald Trump’s escalation of the trade war with China.

Inflation-adjusted gross domestic product increased at a 3.1% annualized rate in the January-March period, compared with an initially reported 3.2% and analyst estimates for a revision to 3%, Commerce Department data showed Thursday. Consumer spending, which accounts for the majority of the economy, grew 1.3%, topping projections for an unrevised 1.2% though still the slowest in a year.