The report also gave the first read on business earnings in the fourth quarter. Pretax corporate profits fell 0.4 percent from the prior quarter for the first decline since early 2017, though profits still rose 7.4 percent from a year earlier.
While the expansion has moderated, the labor market has remained in generally solid shape despite some recent gyrations. Payrolls grew by an average of 186,000 over the past three months as the unemployment held around the lowest levels in a half century.
A separate report from the Labor Department Thursday showed filings for unemployment benefits fell to a two-month low. Jobless claims decreased to 211,000 in the week ended March 23, below what economists had forecast.
Other Findings
- Government spending was revised to a 0.4 percent annualized drop from an initial reading that showed a 0.4 percent gain.
- Inflation remained contained, as the personal consumption expenditures price index, excluding food and energy, rose at a 1.8 percent pace that was revised up from 1.7 percent.
- Gross domestic income, adjusted for inflation, rose 1.7 percent after a 4.6 percent gain the prior quarter. Due to the government shutdown in December and January, the advance estimate scheduled for Jan. 30 and second estimate due Feb. 28 were replaced by an “initial” fourth quarter report that combined the first and second readings. The advance first-quarter estimate will be released April 26.
This article was provided by Bloomberg News.