A strong economic sign: The U.S. economy expanded at a 3.2 percent annual pace in the first three months of 2019, the government said Friday. This was the first time since 2015 that first-quarter GDP topped 3 percent.
Fueling the stronger GDP growth were stronger inventory building and trade. Exports rose 3.7 percent, while imports dropped by the same amount, leading to a smaller trade deficit.
One unexpected factor was a sharp upturn in state and local government spending. Spending by local governments likely picked up due to the partial federal government shutdown, jumping 3.9 percent after a 1.3 percent drop in the prior three months. This was the fastest gain in three years. The contribution from state and local government spending came largely as a result of highway and road construction.
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