US Economy Growth Exceeds Previous Estimate in First Quarter
US economy expanded more than previously projected in the first quarter of the year, after data showed improved performance in trade and business investment boosted the economy.
Year-on-year, the economy rose 1.1 percent in the first quarter of the year, more than previously estimated 0.8 percent, according to the Commerce Department report on Tuesday.
Corporate profits were also revised up, giving a better outlook of the economy in the first half of the year. But with consumer spending rebounding this quarter the economy continues to show signs of accelerating, while business investment appears to lag behind.
Recent gains in employment and low borrowing costs after Federal Reserve reneged on rate hike are helping to fuel household demand, even with global uncertainties largely due to Brexit and China slowdown.
“Consumer spending seems to have bounced back moderately,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in Pennsylvania.
The second quarter advance estimation is scheduled to be released by July 29, when annual revisions will also be reported.