First-quarter GDP growth revised down to 1.6% rate

The economy grew at an inflation-adjusted 1.6% annual rate in the first quarter, the Bureau of Labor Statistics reported Thursday in an updated estimate of gross domestic product.

Thursday’s report revised the growth rate, which is adjusted for seasonal variations, down by 0.4 percentage points from the initial reading.

The revised rate represents an acceleration from the first quarter, when GDP grew at an anemic 0.5% rate.

The report shows that the economy was growing at a relatively strong clip as the war with Iran began. Since then, inflation has soared as energy products have become far more expensive because of the supply crimp in the Strait of Hormuz.

Business investment, in particular, was robust to start the year, driven in part by the race to build out artificial intelligence and the data centers that support it.

Government spending, too, has helped propel GDP.

CONSUMER SENTIMENT PLUNGES TO RECORD