US economic growth in Q1 upgraded to 1.4 per cent
WASHINGTON — The U.S. economy got off to a lacklustre start during the first three months of 2017, though it enjoyed more momentum than earlier estimates indicated.
The Commerce Department said Thursday that gross domestic product, the broadest measure of economic health, grew at an annual rate of 1.4 per cent in the first quarter — better than a previous estimate of 1.2 per cent and double the initial estimate of 0.7 per cent. The upgrade reflects new-found strength in consumer spending and exports.
The result is weaker than 2.1 per cent growth in the fourth quarter and matches the growth rate recorded the second quarter of 2016. It is still well below President Donald Trump’s ambitious growth targets of the economy growing at more than 3 per cent.
Analysts expect growth to accelerate in the second quarter, fueled by solid hiring and an uptick in consumer spending. Estimates from the Atlanta Federal Reserve expect that the economy expanded at an annual pace of 2.9 per cent during the April-June quarter.