The economy grew faster than initially thought in the first quarter, but it's still the worst performance since the first quarter of 2016. Fred Katayama reports.
The U.S. economy grew faster than originally thought in the first quarter. Gross domestic product rose 1.2 percent instead of the 0.7 percent the Commerce Department reported last month. That was more than economists had expected. The slow start to the year is still a blow to President Donald Trump's goal to sharply accelerate economic growth. Barclays chief economist Michael Gapen said, "The second estimate paints a better picture about the degree of slowing in activity at the start of the year, but the main concern about soft growth in private consumption remains." Accounting for the upwardly revised pace of growth: consumer spending. It rose at twice the rate that was initially reported - up 0.6 percent. That's key because consumer spending accounts for two-thirds of economic activity. Investors saw some signs of that Friday as two retailers posted strong quarterly sales. Warehouse club operator Costco Wholesale's sales shot up 8 percent, while videogame retailer GameStop's sales climbed nearly 4 percent. Both results beat Wall Street's targets.