US economic growth revised higher in first quarter; profits rebound
U.S. economic growth slowed in the first quarter although not as sharply as initially thought, as a surge in home building and steady inventory accumulation partially offset the impact of modest consumer spending and soft business investment.
Gross domestic product rose at a 0.8 percent annual rate as opposed to the 0.5 percent pace reported last month, the Commerce Department said on Friday in its second GDP estimate for the January-March period.
That was the weakest growth since the first quarter of 2015.
The upward revision reflected a smaller drag from trade than previously estimated. The government also reported a rebound in after-tax corporate profits, which increased at a 0.6 percent rate in the first quarter after plunging at an 8.4 percent pace in the fourth quarter.
Income growth for the first quarter also was revised higher. As a result, the economy grew at a much faster 2.2 percent rate when measured from the income side, after expanding at a 1.9 percent pace in the fourth quarter. Read more