The U.S. economy grew at a slightly slower pace than originally reported in the first quarter, according to revisions released by the Commerce Department Thursday.
The revisions show gross domestic product — the broadest measure of economic activity — rose at a 2.4% annual pace in the first three months of the year, down slightly from the 2.5% pace originally reported last month.
It’s typical for the Commerce Department to revise the data several times, and Thursday’s report marks the second of three GDP estimates.
The report didn’t significantly alter the picture of the U.S. economy. We know from the GDP report, as well as other government data, that consumer spending picked up in the first quarter, but job growth continued at roughly the same pace as in the fourth quarter of 2012.
Consumer spending, which accounts for roughly two thirds of the GDP measure, rose at a 3.4% annualized pace in the first quarter, driven largely by spending on household utilities, financial services and health care. Strong auto sales were also a bright spot.
On the business side, spending on software and equipment also boosted growth. Meanwhile, businesses restocked their shelves and warehouses after drawing down their inventories in the fourth quarter.
Cuts in government spending were the single biggest drag on economic growth.
