US growth in Jan.-March upgraded to still-slow 1.2 pct. rate
WASHINGTON — The U.S. economy began 2017 with a whimper — though not quite as weak a whimper as the government had first estimated.
The gross domestic product — the broadest gauge of the economy — expanded in the January-March quarter at a 1.2 per cent annual rate, the government said Friday. That was better than its initial estimate of a 0.7 per cent rate but far below President Donald Trump’s growth targets, which most economists consider unrealistic.
The government’s upgraded estimate of first-quarter growth reflected new-found strength in consumer spending, business investment and state and local government spending.
Many analysts have estimated that growth in the current April-June quarter is rebounding to an annual rate above 3 per cent. They envision stronger consumer spending fueled by solid hiring, with unemployment at a decade low of 4.4 per cent, and increased consumer spending. They note that growth in the first quarter was held down by some unusual temporary factors, including unseasonably warm weather, which limited spending on utilities.