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fer what we believe t

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WASHINGTON Cheap Browns T-Shirts , May 26 (Xinhua) -- The U.S. economy in the first quarter grew at a faster pace than previously estimated, driven by strong fixed investment and solid consumer spending.

The real gross domestic product (GDP) increased at an annual rate of 1.2 percent in the first quarter, higher than the previously estimate of 0.7 percent, but still lower than the 2.1 percent growth in the fourth quarter of last year, according to the second estimate released by the Commerce Department on Friday.

The upward revision was attributed to the faster increases in nonresidential fixed investment and consumer spending, said the Commerce Department.

Consumer spending, which accounts for about 70 percent of the U.S. economy, increased 0.6 percent in the quarter, faster than the advance estimate of 0.3 percent, but still lower than the 3.5 percent in the previous quarter.

Growth of nonresidential fixed investment was revised up to 11.4 percent in the quarter from the advance estimate of 9.4 percent, hitting a five-year high.

U.S. Federal Reserve officials hold that the slower growth in the first quarter was a blip and expected the growth would pick up pace in the coming quarters, according to the minutes of the central bank's latest policy meeting.

They hold that the weak consumption spending at the beginning of this year was also transitory and expected that consumption growth would pick up pace in coming months because of the solid fundamentals, such as solid job gains, rising household income and wealth, improved household balance sheets, and buoyant consumer sentiment.

Market analysts widely expect that the Fed would stick to its interest rate hike plan this year in which the central bank officials forecast two more hikes for the rest of this year.

The Fed might raise interest rate as soon as at its June meeting, said market analysts.

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