The US economy grew at a faster-than-expected 1.9 per cent rate in the first quarter of 2003, the Commerce Department said this afternoon.
The tepid pace in the January-March period for gross domestic product (GDP) reflected only a marginal improvement from the 1.4 per cent rate of the fourth quarter of 2003.
The slightly faster pace of growth in the first quarter was roughly in line with the consensus forecast of Wall Street economists.
Consumers remained the key force in keeping the economy growing, with business investment faltering, the report showed. Consumer spending rose at a revised 2 per cent rate in the first quarter, up from the initial estimate of a 1.4 per cent gain.
In addition to a higher estimate of consumer spending, there was also an increase in the estimate of US exports, but a downward revision to equipment and software and an upward revision to imports.
The inflation picture remained relatively unchanged in the revised GDP data. The chain-weighted price index linked to GDP showed a 2.5 per cent increase, unchanged from the prior estimate.
By one measure closely watched by economists, known as final sales - GDP growth minus inventory adjustments - the economy grew at a 2.4 per cent rate in the first quarter, up from the previous estimate of a 2.1 per cent gain.