The U.S. economy grew faster than previously reported in the first quarter, undermining predictions of a looming recession.
The nation’s gross domestic product grew by a 2% annualized pace between the fourth and first quarter, not 1.3%, according to a final revision published by the Bureau of Economic Analysis on Thursday.
The unusually large revision reflected increases in consumer spending, exports, state and local government spending, and residential fixed investment. Those increases were partially offset by declines in federal government spending, nonresidential fixed investment, private inventory investment, and imports.
“We still believe a recession is more likely than not,” Gregory Daco, chief economist at Ernst & Young, wrote in a client note cited in press reports. “But we have lowered our recession odds to 55%, and if it were to materialize it would have unique characteristics.”
