WASHINGTON – The U.S. economy grew slightly faster at the start of the year than previously estimated, even though consumer spending posted the smallest gain in two years.
The Commerce Department says the gross domestic product expanded at an annual rate of 1.1 percent in the first quarter, an improvement from the 0.8 percent rate released last month.
The revision reflected stronger export sales and less drag from business investment. Offsetting those gains, consumer spending growth was revised down to 1.5 percent. That was the weakest showing since the first quarter of 2014.
While growth prospects for the spring look even better, the shockwaves from Britain's decision to leave the European Union could spread to the U.S. economy in coming months. Economists forecast growth of around 2.5 percent in the current quarter.