First quarter economic growth was actually 2%, up from 1.3% first reported in major GDP revision
The U.S. economy showed much stronger than expected growth in the first quarter than previously thought, according to a big upward revision Thursday from the Commerce Department.
Gross domestic product increased at a 2% annualized pace for the January-through-March period, up from the previous estimate of 1.3% and ahead of the 1.4% Dow Jones consensus forecast. This was the third and final estimate for Q1 GDP. The growth rate was 2.6% in the fourth quarter.
The upward revision helps undercut widespread expectations that the U.S. is heading toward a recession.