GDP growth in the first quarter was revised down to 1.9% in the BEA’s second estimate. This growth represents a slowdown from the 3.0% pace set in the fourth quarter of 2011, but is significantly better than the 0.4% growth in the first quarter of last year.
The revisions to the forecast were primarily due to increased drags from government spending and net exports. Government expenditures proved a 0.8% drag, more than the 0.6% initially reported. Net exports drag slowed growth by about 0.1%. Personal consumption reduced its contribution to growth as well, adding 1.9%, down from 2.0% in the first estimate.
Fixed investment improved in the second estimate, contributing 0.6% to growth, up from the 0.2%.