RPT U.S. Q1 GDP up 2.0 pct annualized vs 1.0 rise in Q4

(repeating to amend period in headline and to include additional material)  WASHINGTON (AFX) - The economy, as measured by real gross domestic product, accelerated in the first quarter to a 2.0 pct annual growth rate from a 1.0 pct rise in the fourth quarter, the Commerce Department said.The first quarter growth rate was much stronger than expected. The consensus forecast of Wall Street economists was for first quarter GDP to rise 0.8 pct. The acceleration in the period was led by consumer spending. Government spending as well as business and residential construction also contributed to growth.These gains were offset by a large decrease in inventory investment, and weaker exports. However, the sharp drop in imports in February translates into a boost to first quarter GDP.Final sales -- GDP growth minus inventory behavior and trade -- rose 4.6 pct in the first quarter, up from a 1.7 pct rise in the fourth quarter. This is the strongest pace of final sales since the first quarter of 2000.Inflationary pressures accelerated in the period, the Commerce Department said. Analysts had expected the increase in inflation based on a pickup in core CPI prices in the first quarter.As measured by the GDP chain-weighted price index, inflation rose 3.2 pct in the first quarter, up from a 2.0 pct increase in the fourth quarter. This is the highest quarterly inflation rate since first quarter 2000.Excluding food and energy prices, the GDP chain-weighted price index was up 2.3 pct, up from a 1.9 pct rise in the fourth quarter.Excluding computers, the price index rose 3.7 pct, faster than the 2.2 pct rise in the fourth quarter.The consumption price index rose 3.3 pct in the first quarter, up from the 1.9 pct rise in the fourth quarter.Excluding food and energy prices, the consumption price index was up 2.7 pct, compared with the 1.6 pct rise in the previous quarter.This is the preliminary estimate of GDP growth for the first quarter. It wil l be revised twice before a final figure is reached. The first revision will be released on May 25.The major contributors to first quarter GDP growth were consumer spending and residential construction, the Commerce Department said.Consumer spending on goods and services rose 3.1 pct in the first quarter, up from a 2.8 pct rise in the fourth quarter. Spending on durable goods rose 11.9 pct after falling 3.1 pct in the fourth quarter. Non-durable goods spending rose 2.6 pct, up from a 1.0 pct rise in the fourth quarter. Spending on services rose 1.7 pct, weaker than the 4.9 pct rise in the fourth quarter.Business fixed investment rose 1.1 pct in the first quarter, up from a 0.1 pct drop in the fourth quarter.Residential construction rose 3.3 pct in the first quarter from a decline of 3.6 pct in the fourth quarter.But overall gross private domestic investment fell 11.5 pct after falling 4.1 pct in the fourth quarter.Software and computer equipment spending fell 2.1 pct in the first quarter, after a decrease of 3.3 pct in the fourth quarter.Federal government spending rose 4.0 pct in the period, stronger than the 2.9 pct rise in the previous quarter.The trade sector added 1.38 percentage points to first quarter GDP growth, after lowering growth by 0.55 percentage points in the fourth quarter.Imports fell 10.4 pct in the first quarter following a drop of 1.2 pct in the previous quarter.Exports fell 3.7 pct after falling 9.9 pct in the fourth quarter.The real change in business inventories subtracted 2.48 percentage points from first quarter GDP growth. In the fourth quarter, inventories subtracted 0.62 percentage points from growth.Businesses increased their inventories by a slim 7.1 bln usd, compared with a rise of 55.7 bln in the fourth quarter.The first estimate of first quarter GDP growth includes assumptions about the March trade deficit and inventories. According to the department, the trade deficit is expected to widen in March. Inventories, excluding autos, are forecast to rise in March.The personal saving rate decreased to a negative 1.0 pct in the first quarter from a negative 0.7 pct in the fourth quarter.

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