First Quarter GDP Revised Down

Washington, DC, May 31, 2012 — The U.S. economy grew less in the first quarter than initially estimated, according to the Commerce Department.

The government estimated that the economy grew at a 1.9% pace in the first quarter, slower than the 2.2% rate initially reported.

This is down from 3.0% growth in the fourth quarter of last year.

Economists had expected a downward revision to 1.8%.

The revisions to first-quarter GDP were in lower inventory building, a wider trade gap, and weakness in state and local government spending.

Consumer spending was also downwardly revised.