The U.S. economy grew at a robust annual rate of 6.4% in the first three months of this year, unchanged from the government's initial estimate. The recovery from last year's deep recession gained steam at the beginning of this year, helped by vaccines to combat the virus and trillions of dollars in government assistance.
The rise in the gross domestic product, the economy's total output of goods and services, was the same as the government's first look one month ago, the Commerce Department reported Thursday. Upward revisions in spending by consumers, who account for two-thirds of economic activity, was offset by weaker growth in exports.
Economist believe GDP growth could top 10% in the current April-June quarter. For the year, economists expect growth to top 6%, giving the country the strongest economic performance since a 7.2% gain in 1984, when the country was also recovering from a deep recession.
The 6.4% first quarter performance represented an improvement after GDP growth slowed to a 4.3% rate in the final three months of last year, a time when rising coronavirus cases and waning government support raised fears that the country could tip back into recession.
But passage of nearly $3 trillion in extra government support in December and March, as well as wide-spread introduction of vaccines, has allowed thousands of businesses to reopen and millions of people to go back to work.
Thursday's report was the government second of three looks at GDP performance in the first quarter.
It showed that consumer spending grew at a sizzling annual rate of 11.3%, even better than the 10.7% estimate made a month ago. Business investment spending was also up and residential construction, which has been a standout performer over the past two years, grew at 12.7% annual rate, better than the 10.8% gain first estimated
However, those areas of stronger growth were offset by weakness in U.S. export sales, which fell at an annual rate of 2.9%, larger than the 1.1% rate of decline reported a month ago.
