The U.S. economy grew by much more than previously estimated in the first quarter of 2023, according to revised data released by the Commerce Department on Thursday.
The Commerce Department said gross domestic product jumped by 2.0 percent in the first quarter compared to the previously estimated 1.3 percent increase. Economists had expected the pace of GDP growth to be unrevised.
The stronger than previously estimated growth reflected upward revisions to exports and consumer spending that were partly offset by downward revisions to nonresidential fixed investment and federal government spending.
Despite the notable upward revision, the GDP growth in the first quarter still represents a slowdown compared to the 2.6 percent surge in the fourth quarter of 2022.
The deceleration in GDP growth primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment.
The negative contributions were partly offset by an acceleration in consumer spending, an upturn in exports, and a smaller decrease in residential fixed investment.
On the inflation front, the jump by the personal consumption expenditures price index in the first quarter was downwardly revised to 4.1 percent from 4.2 percent.
The surge by the core PCE price index, which excludes food and energy prices, was also downwardly revised to 4.9 percent from 5.0 percent.
