First quarter economic growth revised upward

The economy grew at an annual rate of 3.5 percent in the first quarter of 2005, revised up 0.4 percentage point from the advance estimates released in April, according to the U.S. Bureau of Economic Analysis (BEA). BEA also released its first estimate of first-quarter corporate profits, which increased 13.8 percent from the same quarter one year ago.

The 3.5-percent increase in inflation-adjusted gross domestic product (GDP) primarily reflected increases in consumer spending, business inventory investment, and exports. GDP is the most comprehensive measure of U.S. economic activity. Today's upward revision to the GDP growth rate mainly reflected a downward revision to imports of goods that was partly offset by a downward revision to inventory investment.

The upwardly revised growth still represents a modest slowing from the fourth quarter's 3.8 percent pace and was slightly below Wall Street economists' forecasts for a 3.6 percent rate.