2019.06.2709:35:00UTC+00U.S. Economy Grew By Unrevised 3.1% In The First Quarter

A report released by the Commerce Department on Thursday showed the pace of U.S. economic growth in the first quarter was unrevised from the previous estimate.

The Commerce Department said real gross domestic product increased at an annual rate of 3.1 percent in the first quarter, unrevised from the estimate released last month and in line with economist expectations.

The unrevised rate of GDP growth in the first quarter still reflects a significant acceleration from the 2.2 percent increase seen in the fourth quarter of 2018.

The report showed upward revisions to non-residential fixed investment, exports, state and local government spending, and residential fixed investment

However, the upward revisions were offset by downward revisions to consumer spending and inventory investment and an upward revision to imports, which are a subtraction in the calculation of GDP.

The Commerce Department said consumer spending rose by just 0.9 percent in the first quarter compared to the previously reported 1.3 percent increase and the 2.5 percent jump in the fourth quarter.

"Stripping out trade and inventories, final sales to domestic purchasers - a better gauge of domestic momentum - was revised slightly higher to 1.6%, but this remains its weakest advance since Q4 2015," said a note from Oxford Economics.

The noted added, "First quarter GDP paints a misleading picture of US economy's vigor at the start of the year, and Q2 GDP will come as a timely reminder that the economy is now well passed its inflection point."

The revised data also showed core consumer prices, which exclude food and energy prices, climbed by 1.2 percent in the first quarter compared to the 1.8 percent increase in the fourth quarter.