Reflecting downward revisions to private inventory investment, consumer spending, and exports, the Commerce Department released a report on Thursday showing an unexpected downward revision to the pace of U.S. economic growth in the first quarter.
The report said real gross domestic product increased by 2.0 percent in the first quarter compared to the previous estimate of 2.2 percent growth. Economists had expected the pace of GDP growth to be unrevised.
With the unexpected downward revision, the increase in GDP in the first quarter reflects a notable slowdown compared to the 2.9 percent jump in the fourth quarter of 2017.
The Commerce Department said the downward revisions to private inventory investment, consumer spending, and exports were partly offset by an upward revision to non-residential fixed investment.
Meanwhile, the report also showed an upward revision to imports, which are a subtraction in the calculation of GDP.
The slower rate of GDP growth in the first quarter reflected decelerations in consumer spending, exports, and government spending and a downturn in residential fixed investment.
A smaller decrease in private inventory investment and a larger increase in non-residential fixed investment helped to limit the slowdown along with a deceleration in imports.