By Jeffry Bartash
WASHINGTON (MarketWatch) - The U.S. economy grew at a 2.4% annual pace in the first quarter, little changed from the originally reported 2.5% increase, the Commerce Department said Thursday. Economists polled by MarketWatch had expected growth to remain unchanged at 2.5%. Consumer spending was somewhat higher, while business investment and government outlays were revised down, according to the government's second assessment of gross domestic product. Consumer spending - the engine of the U.S. economy - was revised up to 3.4% from 3.2%. That's the fastest rate in two years. Yet business investment in commercial real estate fell sharply and companies did not increase inventories as much as previously believed. Inventories rose $38.3 billion instead of the previous estimate of $50.3 billion. Also, government spending fell by a revised 4.9% instead of 4.1%. In the trade category, export growth was revised down to 0.8% from 2.9% and import growth was reduced to 1.9% from 5.4%. Adjusted corporate profits, meanwhile, fell by $43.8 billion in the first quarter after a $45.4 billion increase in the fourth quarter. Inflation as measured by the PCE index was muted, rising just 1.0% overall or by 1.3% excluding food and energy. The GDP report will be refined through one further update next month.
