Investing.com - The U.S. economy grew at a slower rate than initially reported in the first quarter, according to data released Thursday.
Gross domestic product expanded at a 2.0% annual rate in the first three months of 2018, instead of the previously reported 2.2% pace, the Commerce Department said in its third GDP estimate.
That was a deceleration from the fourth quarter's brisk 2.9% pace.
Consumer spending was revised down to 0.9%, compared to expectations of 1.0%, acting as a drag on growth.
Exports were also revised down to 3.6% from 4.2%, while imports were revised slightly higher, to 3.2% from 2.8% in the second estimate.
The increase in consumer spending was the weakest in nearly five years and it contributed, along with slower trade, to the downward revision to growth.
The slowdown was partially offset by a revision in corporate profits to 8.7% from 5.9% in the second estimate.
Meanwhile, a closely followed GDP tracker by the Atlanta Federal Reserve estimates the U.S. will expand at a 4.5% annual rate in the second quarter. Preliminary data on second quarter growth is due on July 27.
U.S. Treasury Secretary Steven Mnuchin indicated Wednesday that the Trump administration was optimistic on the outlook for economic growth.
"We’re excited. This is the six month anniversary of tax cuts. We’re expecting a big second quarter GDP number," he said.