U.S. economy hit the gas in the first quarter

The U.S. economy expanded at a rate of 3.2 percent in the first quarter, sprinting past analysts’ growth forecasts of 2.3 percent. The Department of Commerce’s initial estimate of gross domestic product — the total value of goods and services — may tamp down fears that economic activity is slowing.

First-quarter growth was fueled by an uptick in state and local government spending, as well as a 3 percent increase in disposable personal income, the Commerce Department said.

The pace represents a sharp pick-up from the fourth-quarter, when GDP grew 2.2. percent.

Analysts surveyed by Bloomberg had expected first-quarter growth of 2.3 percent.

Categories: US & World News

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