The U.S. economy was much stronger in the first quarter of 2023 than it initially seemed, according to data released Thursday by the Commerce Department.
U.S. gross domestic product (GDP) grew at an annualized rate of 2 percent in the first quarter, according to revised data released Thursday, far faster than the 1.3-percent annualized growth rate estimated by government officials earlier this year.
The first-quarter growth rate has been revised substantially higher from the 1.1-percent annualized rate first reported by the Bureau of Economic Analysis (BEA) earlier this year.
The revision is much bigger than what is normally announced by the BEA.
The BEA makes three estimates of economic growth for each quarter, but revisions are usually far smaller than the 0.7-percentage point boost seen Thursday.
BEA officials said new data showing stronger consumer spending and higher exports — along with a dip in imports — helped fuel economic growth between January and March.
The revised data is the latest sign of the U.S. economy powering through high interest rates, stubborn inflation and persistent predictions of a recession.
The U.S. economy has steadily added jobs throughout the year and maintained an unemployment rate of 3.7 percent in May, just 0.2 percentage points below the pre-pandemic low of 3.5 percent.
Stronger economic growth could be a boost to President Biden as he pushes to sell voters on his handling of the economy. In recent speeches, Biden highlights the economy’s swift rebound from the COVID-19 pandemic and billions of dollars invested by the administration in manufacturing, transportation and technological improvements across the country.
While the U.S. economy is strong by many measures, high inflation has weighed heavily on Americans and their views of the economy. Republican lawmakers have blamed Biden and congressional Democrats for fueling high inflation through their economic investments, though prices have surged throughout the world since the end of the COVID-19 recession.
Updated at 9:54 a.m. ET.