The contribution from net exports reflected a 9.3 percent gain in shipments abroad and a 0.5 percent increase in imports. In addition to soybeans, exports were boosted by petroleum and related products.
Government spending increased at a 2.1 percent rate, adding 0.37 percentage point to growth. Federal outlays rose 3.5 percent, the second-fastest rate since 2014, boosted by defense spending. State and local outlays advanced 1.4 percent.
Spending Power
The data showed consumers’ wallets grew at a slower pace. After- tax incomes adjusted for inflation increased at a 2.6 percent annual pace, after 4.4 percent in the prior quarter. The saving rate fell to 6.8 percent from 7.2 percent, which was revised from 3.3 percent as part of the comprehensive update.
First-quarter gross domestic income, adjusted for inflation, was revised to a 3.9 percent gain from a previously reported 3.6 percent.
Price data in the report indicated that inflation was in line with the Fed’s goal. Excluding food and energy, the central bank’s preferred price index rose at a 2 percent annualized rate last quarter, following 2.2 percent in the first three months of the year.
This article was provided by Bloomberg News.