Revised GDP estimates, recently released by the Department of Commerce, show that the economy grew 4.8% in the first quarter, more than a half-point higher than was reported earlier. The bulk of the revision can be attributed to a substantial upward revision to business inventories. Consumer spending also grew faster than previously estimated. A large downward revision to net exports, caused by higher-than-expected imports, partially offset these increases. Economists participating in the May 10 Blue Chip survey expect economic growth to slow to around 2.4% during the current quarter, and to 2.3% for the rest of the year.
Suggested citation: “Economic Activity,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-06, pp. 10-11, 06.01.1998.