US First-Quarter GDP Growth Revised Down to 1.6%, Below 2.0% Estimate

U.S. economic growth in the first quarter was revised down to 1.6% from 2.0%.

The Commerce Department said on May 28 its second estimate showed U.S. gross domestic product rose at an annualized 1.6% rate in the first quarter.

That was 0.4 percentage point lower than the advance estimate released last month. It was also 0.4 percentage point below economists’ 2.0% forecast compiled by Dow Jones.

Downward revisions to private investment and consumer spending led to the lower GDP reading. The period used to calculate first-quarter growth also partly reflected the aftermath of the U.S.-Iran war that escalated in late February.

The U.S. releases GDP figures three times for each quarter: an advance estimate, a second estimate and a final reading. The final figure incorporates economic activity indicators that were unavailable when the second estimate was compiled.

Unlike South Korea, the U.S. reports GDP growth by annualizing the change from the previous quarter.