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
Read Evan's Posts
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.

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

Daimler-Class8 partnership.
Fleet Managementby News/Media ReleaseFebruary 2, 2026

DTNA Partners with Class8 to Expand Digital Services for Freightliner Owner-Operators

A new partnership brings free wireless ELD service plus load optimization and dispatch planning tools to fourth- and fifth-generation Freightliner Cascadia customers, with broader model availability planned through 2026.

Read More →
SponsoredFebruary 1, 2026

Reducing Fleet Downtime with Advanced Diagnostics

This white paper examines how advanced commercial vehicle diagnostics can significantly reduce fleet downtime as heavy duty vehicles become more complex. It shows how Autel’s CV diagnostic tools enable in-house troubleshooting, preventive maintenance, and faster repairs, helping fleets cut emissions-related downtime, reduce dealer dependence, and improve overall vehicle uptime and operating costs.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
Ad Loading...
M&A illustration with Werner and FirstFleet logos
Fleet Managementby Deborah LockridgeJanuary 29, 2026

Werner Expands Dedicated Fleet Nearly 50% With FirstFleet Acquisition

The $283 million acquisition of FirstFleet makes Werner the fifth-largest dedicated carrier and pushes more than half of its revenue into contract freight.

Read More →
Bobit Business Media B2X Rewards.
Fleet Managementby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches B2X Rewards Engagement Program

B2X Rewards is a new, gamified rewards program aimed at driving deeper engagement across BBM’s digital platforms, newsletters, events, and TheFleetSource.com.

Read More →
Trucking Trends series graphic
Fleet Managementby Deborah LockridgeJanuary 29, 2026

AI is Reshaping Trucking in 2026, from the Back Office to the Shop

Trucking’s biggest technology shifts in 2026 have one thing in common: artificial intelligence.

Read More →
Ad Loading...
Column graphic illustration with Deborah Lockridge head shot and a small fleet truck in the background
Fleet Managementby Deborah LockridgeJanuary 27, 2026

Why Small Trucking Fleets Are Still Standing [Commentary]

Why discipline, relationships, and focus have mattered more than size for smaller trucking fleets during the freight recession.

Read More →
Fleet Managementby Deborah LockridgeJanuary 23, 2026

Cargo Theft Is Surging. A Bill in Congress Could Help. [Video]

Cargo theft losses hit $725 million last year. In this HDT Talks Trucking Short Take video, Scott Cornell explains how a bill moving in Congress could bring federal tracking, enforcement, and prosecutions to help address the problem.

Read More →
CargoNet infographic showing 2025 cargo theft trends
Fleet Managementby Deborah LockridgeJanuary 22, 2026

Cargo Theft Losses Jump 60% in 2025 as Criminals Target Higher-Value Freight

Cargo theft activity across North America held relatively steady in 2025 — but the financial damage did not, as ever-more-sophisticated organized criminal groups shifted their cargo theft focus to higher-value shipments.

Read More →
Ad Loading...
Phillips Connect -- McLeod smart trailer TMS.
Fleet ManagementJanuary 22, 2026

Phillips Connect, McLeod Integrate Smart Trailer Data into TMS Workflows

A new partnership between Phillips Connect and McLeod allows fleets to view trailer health, location, and cargo status inside the same McLeod workflows used for planning, dispatch, and execution.

Read More →