The U.S. economy lost some steam during the first three months of the year. The Commerce Department said Friday that growth slowed to just 2.2 percent, down from 3 percent at the end of last year.
The good news was that the economy continued to grow during the first quarter of the year. But anyone who was waiting for growth to kick into a higher gear was disappointed once again. One reason for that was a slowdown in business investment — companies spent less on new equipment and software even though profits were surprisingly strong.
During the last three months of the year, the U.S. economy picked up its pace of growth. The Commerce Department revised its previous estimate today and said the gross domestic product expanded at an annual rate of 3 percent, which exceeded the previous estimate of 2.8 percent and was better than the third quarter's 1.8 percent pace.
The AP reports:
"The growth estimate was revised up because consumers spent more than first thought, and businesses cut spending by much less.