Gross domestic product increased at a 1.2 percent annual rate instead of the 0.7 percent pace reported last month,
the Commerce Department said on Friday in its second GDP estimate for the first three months of the year.
WASHINGTON — The U. S. economy slowed less than initially thought in the first quarter,
but there are signs it could struggle to rebound sharply in the second quarter amid slowing business investment and moderate consumer spending.
While GDP growth appears to have regained speed early in the second quarter, hopes of a sharp rebound have been tempered by weak business
spending, a modest increase in retail sales last month, a widening of the goods trade deficit and decreases in inventory investment.
EQUIPMENT SPENDING SLOWING
In a second report on Friday, the Commerce Department said non-defense capital goods orders excluding aircraft,
a closely watched proxy for business spending plans, were unchanged in April for a second straight month.
Growth in consumer spending, which accounts for more than two-thirds of U. S. economic activity,
rose at a 0.6 percent rate instead of the previously reported 0.3 percent pace.
Spending on equipment rose at a 7.2 percent rate in the first quarter rather than the 9.1 percent reported last month.