First Quarter GDP Remains at 3.1 in First Quarter as Consumer Spending Slows
June 28, 2019
The U.S. economy grew at a strong 3.1 percent rate in the first quarter, according to the second, unrevised reading. However, a downward revision of the already weak consumer spending component suggests that growth will slow in the second quarter.
In the first reading, consumer spending was estimated to have grown by 1.3 percent. The most recent reading revised that growth down to 0.9 percent. Consumer spending makes up more than two-thirds of total GDP, so slowing momentum there could signal a larger cooling down of the economy. The Atlanta Fed’s GDPNow tracker is projecting second-quarter growth of just 1.9 percent.