A second estimate of how much the U.S. grew in the first quarter of the year has been revised downward slightly from its original figure.
The U.S. Commerce Department reports the gross domestic product expanded at an annual rate of 2.4%, down from 2.5% reported last month. The rate is still much higher than the 0.4% rate reported in the final quarter of last year.
Many analysts believe this measure of the nation’s total output of goods and services is slightly lower than first reported due to government spending cuts that took effect during the first quarter. There are increasing concerns this will lead to the economy slowing more in the current quarter. Government spending in the first quarter fell at an annual rate of nearly 5%, faster than the little more than 4% rate originally estimated.
Helping to keep the GDP from falling was consumer spending, increasing 3.4% in this second estimate, slightly higher than first reported.
A third and final estimate of the GDP by the Commerce Department will be released in late June.