GDP shrinks less than estimated, thanks to consumer spending

Washington

THE world's largest economy shrank in the first quarter, just not as much as previously estimated, assisted by a bigger gain in consumer spending.

Gross domestic product (GDP) fell at a 0.2 per cent annualised rate, compared with a previously reported 0.7 per cent drop, revised data from Commerce Department showed on Wednesday in Washington. That matched the median forecast of 76 economists surveyed by Bloomberg.

The harsh winter weather and port delays that damped growth at the start of the year have given way to increases in consumer spending and housing, bolstering Federal Reserve projections that the setback was temporary. Still, pockets of weakness remain as lower oil prices continue to hinder …