The U.S. grew a bit slower in the first three months of 2019 than originally reported, mostly because of weaker business investment, the Commerce Department reported. Gross domestic product grew at a 3.1 percent annual pace in the first quarter, down slightly from an initial 3.2 percent estimate.
Most worryingly, corporate profits also fell for the second quarter in a row in a negative sign for the economy. Adjusted corporate profits before taxes fell at annual 2.8 percent pace, the biggest quarterly decline for that measure since 2015.
Consumer spending rose a mild 1.3 percent, held down by reduced purchases of durable or long-lasting goods such as autos or appliances. But spending on durable goods sank 4.6 percent, marking the biggest drop for that category in 10 years.
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