The U.S. Commerce Department announced the nation’s Gross Domestic Product grew 1.8 percent in the first quarter, a significant downward revision from its earlier estimate of 2.4 percent.
The final estimate, which is based on more complete data, shows exports declined 1.1 percent during the quarter compared with a decrease of 2.8 percent in the fourth quarter of 2012. Consumer spending, private inventory buildups and residential fixed investment were the primary drivers of growth, with reductions in government spending and exports acting as a drag. Imports also declined (0.4 percent vs. 4.2 percent in fourth quarter), but since they don’t count toward domestic productivity the decline actually worked in a small way towards boosting GDP. – Eric Kulisch
U.S. GDP was only 1.8% in 1Q
