Economic Watch: GDP Revised Lower; Consumer Confidence, Employment Strong
The widest measure of U.S. economic growth was revised lower on Wednesday, according to newly released figures, while separate reports showed consumer feelings remain good and employers continue adding jobs.

The widest measure of U.S. economic growth was revised lower on Wednesday, according to newly released figures, while separate reports showed consumer feelings remain good and employers continue adding jobs.
The Commerce Department’s second of three estimates of first quarter gross domestic product (GDP) performance showed it expanded at an annual rate of 2.2%, down from the 2.3% rate it reported a month earlier.
During the fourth quarter of 2017, annual GDP performance was estimated to have expanded at a 2.9% annual rate with rates of slightly better than 3% in the third and second quarters. The GDP expanded at just a 1.2% annual rate in the first quarter of 2017.
The second estimate for the first quarter is based on more complete data, according to the department, that showed a slower increase in inventories, lower corporate taxes and a slightly bigger decrease in consumer spending that reported a month earlier.
Analysts at TD Economics said this latest performance was in line with expectations.
“A slight downward revision to growth in the first quarter does not change the story for the economy, which involves residual seasonality holding back growth in the first quarter, but then likely to see quarterly growth of close to 3% through the remainder of the year,” said TD Economics. “Abstracting from quarterly volatility the U.S. economy grew at 2.8% on a year-on-year basis in the first quarter, well above its potential, and a marked acceleration from 2% at the beginning of last year. There is little debate that the U.S. economy has been doing very well.”
Consumer Confidence Remains High
This followed a separate report on Tuesday from the private research group The Conference Board that showed consumer confidence increased in May following a modest April decline.
The Consumer Confidence Index increased in May to reading of 128 up from 125.6 in April. The Present Situation Index increased from 157.5 to 161.7, while the Expectations Index improved from 104.3 last month to 105.6 this month.
“Consumers’ assessment of current conditions increased to a 17-year high, suggesting that the level of economic growth in second quarter is likely to have improved from the first quarter,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ short-term expectations improved modestly, suggesting that the pace of growth over the coming months is not likely to gain any significant momentum.”
Overall, Franco said confidence levels remain at historically strong levels and should continue to support solid consumer spending in the near-term.
Private Sector Employers Add Nearly 180,000 Jobs During May
Meantime, a report on employment in the U.S. that was released Wednesday showed private sector non-farm employers increased payrolls by 178,000 jobs from April to May, according to payroll processor ADP.
“The hot job market has cooled slightly as the labor market continues to tighten,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. “Healthcare and professional services remain a model of consistency and continue to serve as the main drivers of growth in the services sector and the broader labor market as well.”
The number of jobs added in April was revised lower from 204,000 to 163,000 jobs, making the May measure the second lowest gain since last September when there were just 84,000 job additions.
Mark Zandi, chief economist of Moody’s Analytics, said, “Job growth is strong, but slowing, as businesses are unable to fill a record number of open positions. Wage growth is accelerating in response, most notably for young, new entrants and those changing jobs. Finding workers is increasingly becoming businesses number one problem.”
The report was issued two days before numbers from the Labor Department are issued about employment in the U.S.
Related: Business Investment, Consumer Sentiment Strong as Home Sales Slip
More Fleet Management

How Innovative Trucking Leaders Turn Change Into an Advantage
As the pace of change accelerates in trucking, the fleets that adapt best have more than the latest technology. They have cultures that embrace improvement.
Read More →
Freight Broker Bonds Just Got Harder to Get. Here's What That Means for Your Fleet.
When it gets harder for a freight broker to prove they are financially sound, the ones who cannot clear that bar get pushed out of the market. And those are exactly the brokers who used to leave motor carriers holding the bag.
Read More →
Long-Awaited Canadian Border Bridge to Open in Detroit
For trucking, the bridge opening should offer immediate improvements in efficiency and reliability, with new customs facilities, expanded inspection capacity, and direct freeway-to-freeway connections.
Read More →
Aurora Rolls Out Next Generation of Driverless Trucks for Commercial Freight
Aurora's latest autonomous trucks it's rolling out with International feature lower-cost hardware designed for a million miles as the company expands commercial driverless freight operations across the U.S. Sun Belt.
Read More →
Freight Tonnage Down, Rates up, as Lower Capacity Powers Trucking Recovery
The recovery from the freight recession continues to be driven by reduction in capacity rather than by increased demand.
Read More →
Think Your Trucking Fleet Isn't Using Much AI? Think Again
Shadow AI — the use of unauthorized artificial intelligence tools at work — is becoming increasingly common, putting sensitive company data at risk. Learn how trucking fleets can protect sensitive data while embracing AI.
Read More →
ArcBest Consolidates Brands, Cuts Workforce
The company will bring three business units under the ArcBest brand, eliminate about 2% of positions, and expects the changes to generate $40 million in annual savings.
Read More →
Trucking Fleets Faced Record Operating Costs During Third Year of Freight Recession
ATRI's annual operational cost report shows carriers trimmed fleets, delayed equipment purchases, and ran older trucks as expenses continued to outpace freight rates.
Read More →
Michelin Adds AI Assistant to MyConnectedFleet Platform
Michelin’s new generative AI tool delivers instant fleet insights, helping managers analyze fuel use, tire maintenance, vehicle status, and operational performance without manually creating reports.
Read More →
LytxOne Platform Now Features AI, Compliance, and Asset Tracking Tools
New enhancements add AI-powered insights, asset tracking, compliance automation, and configurable privacy controls to Lytx's all-in-one fleet management platform.
Read More →
