2017.06.2909:17:00UTC+00U.S. GDP Growth Unexpectedly Upwardly Revised To 1.4% In Q1

Economic activity in the U.S. grew by more than previously estimated in the first quarter, according to revised data released by the Commerce Department on Thursday.

The report said gross domestic product climbed by 1.4 percent in the first quarter compared to the previously reported 1.2 percent increase. Economists had expected GDP growth to be unrevised.

Despite the unexpected upward revision, the GDP growth in the first quarter still reflects a slowdown compared to the 2.1 percent increase in the fourth quarter.

The faster than previously estimated GDP growth was partly due to an upward revision to consumer spending, which rose by 1.1 percent compared to the previously reported 0.6 percent increase.

The report also showed stronger than previously estimated export growth, although the upward revisions were partly offset by a downward revision to non-residential fixed investment.

The Commerce Department said the slowdown in GDP growth compared to the fourth quarter reflected a downturn in private inventory investment, a deceleration in consumer spending, and a downturn in state and local government spending

On the other hand, the report showed an upturn in exports, an acceleration in non-residential fixed investment, and a deceleration in imports, which are a subtraction in the calculation of GDP.

A reading on core consumer prices, which exclude food and energy prices, showed that the pace of price growth accelerated to 2.0 percent in the first quarter from 1.3 percent in the fourth quarter.