Preliminary data released by the Commerce Department on Thursday showed an acceleration in the pace of U.S. economic growth in the first three months of 2021.
The report said real gross domestic product surged up by 6.4 percent in the first quarter after jumping by 4.3 percent in the fourth quarter of 2020. Economists had expected GDP to increase by 6.5 percent.
The Commerce Department said the GDP growth reflected increases in consumer spending, non-residential fixed investment, federal government spending, residential fixed investment, and state and local government spending.
Meanwhile, decreases in private inventory investment and exports helped limit the upside along with an increase in imports, which are a subtraction in the calculation of GDP.