The US economy grew much faster than originally reported in the first quarter due to sharp increases in business and consumer spending, the Commerce Department reported Friday.
The revised data mean GDP growth in President Donald Trump’s first quarter was 1.2 percent, half a percentage point higher than the first report, which had US economic expansion at its slowest pace in three years.
Businesses fixed investment rose at the fastest pace in five years, which helped put a far rosier on the January-March period.
Analysts had been expecting a revision of only a tenth of a point.
The result was still far slower than the final three months of 2016, when GDP grew 2.1 percent but analysts say first quarters have trended low in recent years.
Having risen to office with an agenda of economic revival, Trump has pledged to return the world’s largest economy to annual expansion of three percent or more.
The administration is counting on that robust growth — which economists say may not be realistic — to help pay for a proposed military buildup and multi-trillion-dollar tax cuts.
The revised GDP estimate, based on a more complete set of a data than was available in April, also reflected a smaller decrease in spending by state and local governments than originally reported. The Commerce Department will revise the data again in June.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.