The Commerce Department said the national economy grew at a rate of 0.7 percent in the first quarter of 2017, a 1.4 percent decrease from the previous quarter.
April 28 (UPI) — The U. S. Department of Commerce on Friday said the national economy grew at a rate of 0.7 percent in the first quarter of 2017, a 1.4 percent decrease from the previous quarter and the weakest showing in three years.
Real gross domestic product increased at an annual rate of 0.7 percent in the first quarter of 2017, according to the « advance » estimate released by the Bureau of Economic Analysis, the Commerce Department said in a statement . « In the fourth quarter of 2016, real GDP increased 2.1 percent. »
The Commerce Department said a more accurate estimate for the first quarter will be released on May 26.
The growth experienced in the U. S. economy came from nonresidential fixed investment, exports, residential fixed investment and personal consumption expenditures, but that growth was negated by decreases from private inventory investment, federal, state and local government spending.
Imports increased, which subtracts in the calculation of GDP.
« The deceleration in real GDP in the first quarter reflected a deceleration in [personal consumption expenditure] and downturns in private inventory investment and in state and local government spending that were partly offset by an upturn in exports and accelerations in both nonresidential and residential fixed investment, » the Commerce Department said.
Economists two months ago predicted first-quarter growth would be about 2 percent. Most experts believe the economy is picking up. Wall Street anticipates for growth at an annual rate of 2.8 percent in the second quarter.
