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| Version 0 | Version 1 |
|---|---|
| US growth rate revised down to 1.8% | US growth rate revised down to 1.8% |
| (35 minutes later) | |
| The US economy grew by less than previously estimated in the first quarter of the year, the Commerce Department has said. | The US economy grew by less than previously estimated in the first quarter of the year, the Commerce Department has said. |
| Gross domestic product - which measures annual economic output - grew at an annualised pace of 1.8%, down from an earlier estimate of a 2.4% rise. | Gross domestic product - which measures annual economic output - grew at an annualised pace of 1.8%, down from an earlier estimate of a 2.4% rise. |
| Weak business investment, a slowdown in consumer spending and falling exports led to the downward revision. | Weak business investment, a slowdown in consumer spending and falling exports led to the downward revision. |
| In the final quarter of 2012, the annualised growth rate had been 0.4%. | In the final quarter of 2012, the annualised growth rate had been 0.4%. |
| Tax impact | |
| The revised figure surprised analysts, who had expected it to remain unchanged at 2.4%. | |
| A breakdown showed that consumer spending, which accounts for three-quarters of US GDP, grew at a weaker pace of 2.6%, rather than the previously estimated 3.4%. | |
| Exports, which were previously reported as having risen, actually shrank by 1.1%, due to the weak global economy. Imports also contracted by 0.4%. | |
| The payroll tax increases introduced in January and concerns about government spending cuts are thought to have forced households and businesses to delay spending and investment. |