The US economy surged ahead at its fastest pace in nearly two years in the first quarter, although it grew a bit slower than initially thought, the US government said today in a report that showed consumer and business spending was weaker than first estimated.
US gross domestic product, a measure of the goods and services produced within US borders, raced forward at a revised 5.6 per cent annual rate in the first three months of the year, the US Commerce Department said.
A month ago the department had said GDP advanced at a 5.8 per cent pace.
Economists had expected US GDP growth to be revised up to an increase of 6 per cent.
While first-quarter GDP growth was little changed from the earlier estimate, the report showed consumer spending and business investment was weaker than thought earlier, suggesting the economy's underlying strength at the start of the year was less pronounced as well.