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The government slightly raised its estimate of first-quarter GDP growth from 0.9% to 1.0%.

The figure was initially reported in April at an anemic 0.6 percent, fueling concerns that the U.S. economy may be slipping into recession. However, those concerns have subsided as fresh data showed healthier growth, particularly in consumer spending and exports.

Consumer spending, which accounts for more than two-thirds of national economic activity, rose at a 1.1 percent rate in the quarter, slightly ahead of the preliminary estimate of 1 percent last month. Despite that upward revision, consumer spending posted its smallest gain since the second quarter of 2001, which was during the last recession.

This the sixth time in the last eight quarters that GDP has come in below the long-term trend of 3%.

Posted by edelfenbein at June 26, 2008 9:45 AM