It’s official: The U.S. economy grew in the first quarter of the year, but slightly less than initially believed.
The gross domestic product, or GDP, rose at a 2.2% annual rate during the first three months of the year, slower than the 2.3% initially reported, the Commerce Department said on Wednesday.
The drop can be attributed to inventory growth that proved weaker than preliminary calculations suggested. The value of newly added inventories was revised downward from $33.1 billion to $20.2 billion—a large enough cut to offset the gains made by fixed investments (e.g. equipment, structures, and software), which jumped from 4.6% to 6.5%.
Also taking a modest hit: Revised increases in consumer spending (from 1.1% to 1%) as well as exports (4.8% to 4.2%). Imports, up 2.2% for the quarter, went unchanged.
Economists predict that growth will accelerate as the year progresses and reach more than 3%—a figure achieved twice in the last four quarters.