US GDP revised slightly lower as consumer spending cools
The Commerce Department on Wednesday revised the US economy's growth in the first quarter slightly lower, with consumer spending contributing less than previously reported.
Gross Domestic Product (GDP) grew at an annualized rate of 2.2%. Economists had forecast that headline GDP would be unrevised at 2.3%, according to Bloomberg.
Consumer spending, the biggest contributor to the economy, slowed after a surge that was partly caused by people replacing property destroyed in the summer hurricanes. But its drag on the economy was partly offset by strong business investment. Spending grew by 1%, revised down from the 1.1% rate reported in the initial estimate.
During most of this recovery, first-quarter growth has tended to undershoot the rest of the year because of seasonal-adjustment issues related to how the Bureau of Economic Analysis adjusts for unusual changes in economic activity.
The Atlanta Fed's GDPNow tracker is penciling in a big rebound for the second quarter, with 4% GDP growth. It could be revised lower as more complete data is received over the next few weeks.