WASHINGTON — The U.S. economy began 2017 with a whimper — though not quite as weak a whimper as the government had first estimated.
The gross domestic product — the broadest gauge of the economy — expanded in the January-March quarter at a 1.2 percent annual rate, the government said Friday. That was better than its initial estimate of a 0.7 percent rate but far below President Donald Trump's growth targets, which most economists consider unrealistic.
The government's upgraded estimate of first-quarter growth reflected new-found strength in consumer spending, business investment and state and local government spending.
Many analysts have estimated that growth in the current April-June quarter is rebounding to an annual rate above 3 percent. They envision stronger consumer spending fueled by solid hiring, with unemployment at a decade low of 4.4 percent, and increased consumer spending. They note that growth in the first quarter was held down by some unusual temporary factors, including unseasonably warm weather, which limited spending on utilities.
Friday's upgraded estimate of first-quarter growth "doesn't alter the fact that it was another disappointing start to the year," said Paul Ashworth, chief U.S. economist at Capital Economics. But Ashworth and other analysts said they still envision more robust expansion in the current quarter.
Read Saturday's Arkansas Democrat-Gazette for full details.