Q1 GDP revised upward
The United States’ gross domestic product increased 1.2 percent in the first quarter, according to the Bureau of Economic Analysis. The second estimate of GDP growth was revised upward from an advance estimate of 0.7 percent. Although the first-quarter economic picture is slightly rosier than it initially appeared, U.S. GDP is still showing a marked deceleration from the 2.1 percent growth recorded in fourth quarter 2016.
The quarter saw positive contributions from nonresidential fixed investment, residential fixed investment, exports and personal consumption expenditures, but these were offset by negative contributions from private inventory investment, state and local government spending, and federal government spending.
The second quarter is forecast to have stronger GDP growth than the first quarter, according to the minutes of the May meeting of the Federal Open Market Committee. The minutes note: “In the U.S. economic forecast prepared by the staff for the Ma