A report from the Commerce Department showed on Thursday that the U.S.
economy grew more
than initially estimated in the first quarter of 2023, as private inventory
investment saw an upward revision.
According to the second estimate, the U.S. gross domestic product (GDP) expanded
at an annual rate of 1.3 percent in the first quarter, appearing to be above the 1.1 percent
increase reported in the advance estimate.
Economists had forecast the growth rate to be unrevised at 1.1 percent.
In the previous quarter, the economy rose by 2.6 percent q-o-q.
The first-quarter gain in real GDP was due to advances in consumer
spending, exports, federal government spending, state and local government
spending, and nonresidential fixed investment, which were partly
offset by declines in private inventory investment and residential fixed
investment. Meanwhile, imports, which are a subtraction in the calculation of
GDP, went up.