The U.S. economy expanded more than previously projected in the first quarter as improved performance in trade and business investment more than made up for weaker consumer spending.
Figures released Tuesday revealed stateside gross domestic product, the value of all goods and services produced, rose at a 1.1% annualized rate, compared with a previously estimated gain of 0.8%. Corporate profits at the start of the year were also revised up, giving a brighter picture to gross domestic income.
The economy shows signs of accelerating so far this quarter as the drivers of growth have switched, with consumer spending rebounding while business investment lags behind.
The median forecast of economists called for a 1% rise in GDP. Estimates ranged from an increase of 0.8% to 1.2%
The report marked the last of three readings for the quarter. The advance estimate of second-quarter GDP is scheduled for July 29, when annual revisions will also be issued.
The economy will expand at a 2.5% rate in the second quarter and average 1.9% for this year, according to the median projection in a survey of economists conducted early June.
