By Vicki Needham - 06/25/10 04:08 PM EDT
The phasing out of stimulus spending during the second half of the year might also negatively affect growth in the coming months, especially as state and local governments battle their own budget shortfalls.
Despite a slower pace of consumer spending, consumption increased 3 percent in the first quarter compared with 1.6 percent in the fourth.
An increase in imports, which are a subtraction in the calculation of GDP, slowdowns in private inventory investment, exports, residential and nonresidential fixed investment and a larger decrease in state and local government spending — of 4 percent — contributed to the revised figure.
Real exports increased 11.3 percent in the first quarter, compared with an increase of 22.8 percent in the fourth. Real imports increased 14.8 percent, compared with an increase of 15.8 percent in the final quarter of 2009.
Friday's estimate is the third and final made on quarterly GDP. The Labor Department revises based on new and expanded information after the initial reports.