The U.S. economy grew at a rapid pace in the first quarter of the year, with the gross domestic product registering a 6.1% annual increase.

The Commerce Department reported on Thursday this total measure of output of goods and services grew more rapidly than previously thought when the department first reported a 5.8% rate, followed by a 5.6% performance reported a month ago.
According to Newport Communications Senior Economist Jim Haughey, “The major changes were all in freight-generating activities: fewer imports, more investment spending and more consumer goods purchases.”
He says, “This means that the domestic economy is stronger than previously thought, so that 3% plus GDP growth for 2002 is now more certain. It also probably means that the current quarter growth rate will look weak by comparison, probably around 3%.”
While the economy received a boost from slower inventory liquidation by businesses and increased consumer spending, business investment in new equipment and plants fell again during the quarter, but the decline was at half the pace reported in the final quarter of 2001.
Thursday’s reported performance is the strongest since the fourth quarter of 1999, when the GDP registered an 8.3% rate. It compares to 1.3% and 1.7% rates, respectively, in the final two quarters of last year.