The U.S. grew economy grew a touch softer in the first quarter than originally reported, mainly because of a slower buildup in inventories, the Commerce Department said yesterday. Gross domestic product was trimmed to an annual 2.2 percent pace from the previously reported 2.3 percent.
What happened to change it? There were some positive changes to the first-quarter GDP number: Fixed investment in things like equipment, structures and software was revised higher show a 6.5 percent increase instead of 4.6 percent.
Yet stronger investment was offset by weaker inventory growth. The value of newly added inventories was slashed to $20.2 billion from an originally reported $33.1 billion. The increase in consumer spending was lowered a notch to 1 percent from 1.1 percent. On top of that, exports rose a bit slower at 4.2 percent vs. a preliminary 4.8 percent.
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