Just a rounding error, we guess. From 2.4% down to 1.8%. Move along, nothing to see here.
Uh oh. The U.S. economy suddenly looks weaker, after the government revised its data for the first quarter.
Gross domestic product — the broadest measure of economic activity — rose at a mere 1.8% annual pace between January and March, marking a sharp downward revision from the 2.4% pace reported by the Commerce Department last month.
It’s common for the government to revise its GDP figures several times, and Wednesday’s report marks the third estimate for the first quarter.
The weaker figures came primarily from reduced consumer spending, exports and business investment.
Consumer spending alone accounts for roughly two-thirds of the GDP measure. Consumer spending rose at a 2.6% annualized pace in the first quarter, according to the revisions, down from the 3.4% pace the Commerce Department estimated in its prior report.
In other words, trust nothing coming from Obama’s Commerce Department.