WASHINGTON – Real gross domestic product increased 1.9% at an annual rate in the first quarter, edging up from the 1.8% estimate growth reported last month, based on a downward revision to imports and stronger business inventories, the Commerce Department reported Friday.
Consumer spending increased 2.2%, unchanged from the previous estimate for the quarter ending March 31. It was the smallest consumer spending increase in a year.
Imports were revised lower, swinging trade to a positive contributor to GDP growth for the second time in two quarters. The trade deficit for the quarter was revised to $562.5 billion from $570.7 billion.
Economists expected GDP would increase 1.9% annually, according to the median estimate from Thomson Reuters.
State and local spending was revised sharply lower to contraction of 4.2% from a 3.2% drop reported previously. It was the largest quarterly contraction for state and local spending since the second quarter of 1981.
Core personal consumption expenditures were revised to a 1.6% rise from the 1.4% increase reported last month, the largest increase 15 months.
In the fourth quarter, GDP rose 3.1% while the core PCE deflator rose 0.4%.
