WASHINGTON — U.S. gross domestic product expanded 1.8% at an annual rate in the first quarter, unchanged from the initial estimate, as consumer spending was revised lower and non-residential investments increased, the Commerce Department reported Thursday.
Consumer spending increased 2.2% annually, down from a 2.7% increase reported last month. The first-quarter consumer spending increase was the lowest since the second quarter of last year.
Business investment for the quarter was stronger than the initial estimate, while businesses also spent more on building their inventories. Gross private-domestic investment increased 12.3% annually, up from an 8.5% gain reported previously. Nonresidential fixed investments grew 3.4%, up from 1.8% growth.
Economists polled by Thomson Reuters expected a 2.1% increase in GDP, according to the median estimate.
Personal consumption expenditures, excluding food and energy, dipped to a 1.4% increase for the fourth quarter, revised down from a 1.5% gain reported in the advance report last month.
In the fourth quarter, GDP rose 3.1% while the core PCE deflator rose 0.4%.
