U.S. Growth of 3.2% Tops Forecasts on Trade, Inventory Boost

•  U.S. economic growth accelerated by more than expected in the first quarter on a big boost from inventories and trade that offset a slowdown in consumer spending, bolstering hopes that growth is stabilizing after its recent soft patch.
• GDP expanded at 3.2% in the January-March period, according to Commerce Department data released today that topped all forecasts in a Bloomberg survey which predicted 2.3% growth.
• This improvement follows a 2.2% expansion in the prior three months.
• The growth pickup mainly reflected a downturn in imports, greater state, and local government spending, and rising inventories that were partially offset by slower consumer spending and fixed investment, the Commerce Department said in a statement Friday with the GDP data.

 (Source: Bloomberg)