U.S. First-Quarter Growth Revised Down to 3.1% Pace From 3.2%

• U.S. economic growth last quarter was revised down by less than expected amid stronger consumption and exports than initially reported, suggesting the expansion was on relatively firm footing before President Donald Trump’s escalation of the trade war with China.
• Inflation-adjusted gross domestic product increased at a 3.1% annualized rate in the January-March period, compared with an initially reported 3.2% and analyst estimates for a revision to 3%, Commerce Department data showed Thursday.
• Consumer spending, which accounts for the majority of the economy, grew 1.3%, topping projections for an unrevised 1.2% though still the slowest in a year.
• The figures may alleviate some investor concern that the economy is losing momentum -- highlighted by an inversion in part of the Treasury yield curve -- and potentially help Trump as he starts his reelection campaign.
• Recent reports suggesting a dimmer outlook this quarter, along with the intensifying tariff conflict, are casting a shadow over an expansion poised to become the nation’s longest on record in July.

(Source: Bloomberg)