Preliminary 1Q GDP Revised Lower to Show 3.0% Growth

WASHINGTON — Gross domestic product for the first quarter was unexpectedly revised lower to a 3.0% annualized growth rate, as the consumer spending and business investment categories were revised down and inventory investment was revised up, the Commerce Department reported yesterday.

Meanwhile, consumer spending, which accounts for about 70% of GDP, was revised lower to a 3.5% increase in the first quarter from the 3.6% gain originally reported last month.

The core personal consumption expenditures figure was unchanged from the advance reading of a 0.6% rise.

Economists expected GDP to be revised to 3.4% for the first quarter and for core PCE to remain at 0.6%, according to the median estimate from Thomson Reuters.

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