First-Quarter GDP Downturn Revised to 5.7%

The U.S. economy contracted at an annual rate of 5.7% in the first quarter, a slight improvement from the 6.1% downturn reported last month, the Commerce Department said Friday.

The reading followed a 6.3% gross domestic product decline in the fourth quarter.

Economists had forecast a 5.5% downturn for the first-quarter GDP, Bloomberg reported.

Consumer spending, which accounts for about 70% of the economy, rose at a 1.5% annual pace in the quarter, less than the 2.2% previously estimated.

Friday’s release was the second of three GDP estimates by the Commerce Department.