US GDP grows more quickly than expected in the first quarter

Revised data from the Department of Commerce revealed that US gross domestic product expanded at an annualised rate of 1.2% during the first quarter of 2017, which was stronger than the preliminary estimate of 0.7%.

Economists had anticipated a smaller upwards revision to 0.9%.

Household consumption grew at a 0.6% pace over the quarter, marking a sharp slowdown from the 3.5% pace of growth seen during the previous three-month stretch.

Non-residential investment on the other hand was very strong and was revised higher as well, from an initial estimate of 9.4% to 11.4%.

Meanwhile, government spending shrank by 1.1%.

Final domestic sales, a measure of growth that excludes inventories, advanced at a 2.1% pace, which was also higher than an initial estimate for growth of 1.5%.

The price deflator for personal consumption expenditures increased by 2.4% in the first quarter, unchanged from the initial estimate.