Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Overall Growth Revised Upward

The U.S. economy grew faster in the first quarter of the year than earlier estimates indicated, according to a Commerce Department report released Thursday, but there’s little optimism there the second quarter will show a big surge.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
June 29, 2017
Economic Watch: Overall Growth Revised Upward

 

3 min to read


The U.S. economy grew faster in the first quarter of the year than earlier estimates indicated, according to a Commerce Department report released Thursday, but there’s little optimism there the second quarter will show a big surge.

Ad Loading...

The gross domestic product (GDP) expanded at an annual rate of 1.4%, better than a consensus estimate from analysts. It’s also twice the 0.7% pace that was initially reported at the end of April and slightly better than the 1.2% rate reported a month ago.

Ad Loading...

The increase was due to more complete data showing consumer spending increased nearly twice as much as an earlier estimate, but was still the lowest since the second quarter of 2013. Also, exports increased while the rest of the picture was essentially unchanged.

Despite the upward revision, it was still the slowest quarter of growth since the second quarter of 2016.

The Trump administration's stated target of swiftly boosting U.S. growth to 3% remains a challenge, according to Reuters. A sustained average of 3% growth has not been seen since the 1990s. Since 2000, the U.S. economy has grown at an average 2% rate. The rate last year was 1.6%, the lowest in five years.

Hopes that the economy would step on the gas in the current second quarter have been dampened by recent disappointing numbers for retail sales, manufacturing and even housing.

“The first quarter turned out satisfactory enough and will take some of the heat off of the second quarter, where a big rebound was the initial expectation which, given continued weakness in consumer spending, has since eased back a bit,” said analysis from Econoday.

Ad Loading...

While this upward revision of the GDP is a welcome improvement, it does little to adjust the underlying storyline of the U.S. economy at the start of the year, according to Chief Economist Lindsey Piegza at Stifel Fixed Income.

“Following modest growth at the end of 2016, the U.S. economy lost significant momentum at the start of the new year, with the U.S. consumer pulling back considerably amid ample uncertainty and still-modest labor market gains,” she said. “Businesses were in part buoyed by optimism to increase investment amid anticipation of pro-growth policies, but the failure to see underlying improvement, particularly on the consumer side, left momentum stagnant and fundamentals lackluster at best.”

The report follows one earlier in the week from the International Monetary Fund, which projected the U.S. economy will grow 2.1% this year from 2016, down from its April forecast of 2.3%.

The organization, which seeks to foster global monetary cooperation and secure financial stability, also noted the U.S. would have a hard time achieving a 3% growth rate in 2018 and projected it will more likely be around 2.1% before falling to 1.9% in 2019.

More Fleet Management

Brian Antonellis, senior vice president, fleet operations, Fleet Advantage.
Fleet Managementby Jack RobertsApril 17, 2026

HDT Q&A: Brian Antonellis on the Growing Need to Replace Old Trucks

Fleet Advantage's Brian Antonellis says it's time for fleets to get back to the fundamentals of good maintenance practices. And that includes replacing older, inefficient equipment.

Read More →
Illustration of computer and mobile screens with load matching software superimposed over photo of an oversize load
Fleet Managementby News/Media ReleaseApril 17, 2026

Truckstop.com Adding to Open Deck, Heavy Haul Offerings

Load matching for flatbed, lowbed, oversize and overweight loads can't be automated like basic van freight, but Truckstop.com is adding more high-tech tools to help.

Read More →
Trucker Path, Truckstop.com partnership expands.
Fleet Managementby News/Media ReleaseApril 14, 2026

Trucker Path, Truckstop.com Expand Load Access Partnership

An expanded Trucker Path and Truckstop.com integration brings more freight opportunities into the TruckLoads app while emphasizing security and network quality.

Read More →
Ad Loading...
DAT TVI March 2026.
Fleet Managementby News/Media ReleaseApril 14, 2026

Truckload Rates Hit Two-Year Highs as Diesel Costs Surge, DAT Says

Strong March freight demand combined with a spike in fuel costs pushed both spot and contract truckload rates to their highest levels in more than two years.

Read More →
Cloud computing concept background with human and robot hands concept
Fleet ManagementApril 14, 2026

The AI Conversation You Need to Have with Your TMS Provider

Everyone’s talking about AI — but is your transportation management system actually built for it?

Read More →
Sharp Transportation tractor-trailer
Fleet Managementby News/Media ReleaseApril 14, 2026

Kriska Buys Fellow Canadian Carrier Sharp Transportation Systems

Being part of KTG will allow Sharp to expand and improve its services.

Read More →
Ad Loading...
Illustration with stacks of money and a shattered car windshield
Fleet Managementby Deborah LockridgeApril 13, 2026

Bill in House Would Raise Minimum Insurance for Motor Carriers to $5 Million

The Fair Compensation for Truck Crash Victims Act would increase insurance requirements for interstate motor carriers by nearly seven times.

Read More →
FTR market report for February 2026.
Fleet Managementby News/Media ReleaseApril 10, 2026

FTR Trucking Conditions Index Hits Four-Year High in February

Strong freight rates push TCI to 10.2, but FTR expects fuel-price volatility to skew March results.

Read More →
C.H. Robinson intermodal.

C.H. Robinson Offers Carriers Relief as Diesel Prices Surge

C.H. Robinson is waiving fees on fuel cards and cash advances for April and May, aiming to help carriers offset rising diesel costs tied to geopolitical instability.

Read More →
Ad Loading...
Fleet Managementby StaffApril 8, 2026

What Trucking Events are Happening in 2026?

Looking for trucking-related conventions, expos, and other events? Heavy Duty Trucking has developed this list of national and larger regional trucking shows and events.

Read More →