MW: Q1 GDP up unrevised 1.8%, well below expectations
By Greg Robb
WASHINGTON (MarketWatch) - The U.S. economy expanded at a 1.8% annual rate in the first quarter, the same growth rate as estimated a month ago, the Commerce Department reported Thursday. The first quarter growth rate was much weaker than expected. Economists were predicting a revision to a 2.2% rate. The major surprise was a downward estimate to consumer spending, to a 2.2% annual rate from the initial estimate of a 2.7% rate. Offsetting this weakness was an expected faster pace of inventory accumulation. The core personal consumption expenditure price index rose a revised 1.4%, compared with the initial estimate of a 1.5% gain. In its first estimate, the government said Q1 corporate profits before tax increased $113.8 billion or 6.3% to $1.91 trillion.
