Washington, United States – US economic growth came in at two percent in the first quarter this year, the Commerce Department said Thursday, making a significant upward revision to earlier estimates partly on stronger-than-expected consumer spending.
While GDP growth in the world’s biggest economy has still cooled from 2.6 percent in the final three months of 2022, the latest figure is markedly higher than the annual rate of 1.1 percent originally estimated.
“The updated estimates primarily reflected upward revisions to exports and consumer spending,” said the Commerce Department in its report.
It added that this was partly offset by downward revisions in other areas such as non-residential fixed investment.
Consumption has provided a boost to the US economy, providing it a strong start to 2023 even as banking sector turmoil and higher interest rates weighed on the outlook.
But economic activity has been easing as the US central bank rapidly hiked its benchmark lending rate to rein in stubborn inflation.