US economic growth revised down to 2.2pc in Q1

Published: May 31, 2018 13:37:52 | Updated: June 02, 2018 11:58:33

US economy, the largest economy of the world, grew slightly lower than previously estimated in the first quarter, according to the US Commerce Department report.

The economic growth was revised to an annual rate of 2.2 per cent in the Q1 of the year, slightly lower than 2.3 per cent initially estimated, the commerce department reported on Wednesday.

The department said the general picture of the growth remained the same in the Q1 as the downward revisions to private inventory investment, residential fixed investment, and exports were partly offset by an upward revision to non-residential fixed investment, reports Xinhua.

Personal consumption expenditures, which account for more than two thirds of the overall economy, grew at an annual rate of 1.0 per cent in the first quarter, slightly lower than 1.1 per cent earlier estimated, according to the department.

Non-residential fixed investment, a measure of corporate spending on structures and equipment, grew at 9.2 per cent in the first three months of the year, higher than 6.1 per cent previously estimated.

While the first quarter growth rate was lower than the pace of 2.9 per cent in the fourth quarter of last year, broader indicators suggest the US economy remains on a solid footing so far this year.

The Federal Reserve is expected to raise interest rate "soon," if economic outlook was in line with expectation of Fed officials, according to the minutes for the central bank's latest policy meeting released last week.

"Most participants judged that if incoming information broadly confirmed their current economic outlook, it would likely soon be appropriate for the (Federal Open Market) Committee to take another step in removing policy accommodation," the minutes said.

Most economists and market participants are expecting the central bank to raise interest rates again at its next policy meeting scheduled on June 12-13.

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