June 26 (UPI) -- The U.S. economy shrank at a faster pace in the beginning of the year than originally reported, as new economic data released Thursday showed a more significant drop in consumer spending.
The U.S. Bureau of Economic Analysis announced that the real Gross Domestic Product was reviesed downward to an annualized rate of -0.5% from January through March on new first-quarter data from the Census Bureau Quarterly Services Survey, among other sources.
The dip was deeper than the 0.2% decline reported in the second estimate.
The first quarter weakening of the GDP was attributed to a trade deficit created when American businesses stocked up on imports as the Trump administration's tariffs loomed. Imports were revised as down in the third estimate, but still higher than exports, which led to GDP shrinkage.
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