U.S. Federal Reserve Chairman Powell admitted last week that trade and inventories had provided a temporary boost to economic growth, but he called these factors "usually not reliable indicators of sustained momentum".
On Wednesday, the Federal Reserve hinted that interest rates would be cut as early as July, as economic risks rose, especially the escalation of trade conflicts between China and the United States and low inflation.
"GDP in the first quarter paints a misleading picture of the dynamic U.S. economy at the beginning of the year, while GDP data in the second quarter will promptly remind people that the economy has already passed the inflection point," said Lydia Boussour, senior U.S. analyst at Oxford Economics.
The U.S. Department of Commerce, in its final GDP data for the first quarter, said GDP in the first quarter grew at an annualized rate of 3.1%, which was the same as last month's forecast and in line with economists'expectations. This is also the result of increased expenditure on highways and defense. From October to December last year, the U.S. economy grew by 2.2%.
Although the overall data remain unchanged, the growth rate of consumer spending has been downgraded and firms have invested more in intellectual property products than previously announced valuations.
Non-residential buildings and government spending were also upgraded. The revision of trade deficit and stock accumulation is relatively small.
Excluding trade, inventories and government spending, the U.S. economy grew by only 1.3% in the first quarter. This is the slowest increase in domestic demand indicators since the second quarter of 2013.
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