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- U.S. economy expands as previously estimated in Q1
U.S. economy expands as previously estimated in Q1
A
report from the Commerce Department showed on Thursday that the U.S. economy expanded
as initially estimated in the first quarter of 2021, reflecting the upward
revisions to consumer spending and nonresidential fixed investment, which were
offset by the downward revisions to exports and private inventory investment; in
addition, imports, which are a subtraction in the calculation of GDP, were
revised up.
According
to the second estimate, the U.S. gross domestic product (GDP) grew at a 6.4
percent annual rate in the first quarter, matching the advance estimate.
Economists
had expected the decline rate to be revised to 6.5 percent, following the previous
quarter's advance of 4.3 percent.
The
increase in real GDP in the first quarter reflected gains in personal
consumption expenditures (PCE), nonresidential fixed investment, federal
government spending, residential fixed investment, and state and local government
spending that, however, were partly offset by declines in private inventory
investment and exports. Meanwhile, imports rose.
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