Economic activity in the U.S. increased faster than previously estimated in the first quarter of 2016, according to a report released by the Commerce Department on Tuesday.
The Commerce Department said the pace of growth in gross domestic product was upwardly revised to 1.1 percent from the previous estimate of 0.8 percent.
The revised GDP growth in the first quarter compares to the 1.4 percent jump seen in the fourth quarter and the 1.0 percent increase expected by economists.
The stronger than previously estimated growth primarily reflected upward revisions to exports and non-residential fixed investment.
However, the upward revisions were partly offset by a downward revision to consumer spending, which rose by 1.5 percent compared to the previously reported 1.9 percent increase.
The report said the deceleration in GDP growth in the first quarter reflected slower consumer spending growth, a larger decrease in non-residential fixed investment, and a downturn in federal government spending.
Meanwhile, upturns in state and local government spending and exports and an acceleration in residential fixed investment helped limit the downside.
The Commerce Department also said its reading on core consumer prices, which exclude food and energy prices, surged up by 2.0 percent in the first quarter after rising by 1.3 percent in the fourth quarter.
by RTT Staff Writer
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