US bans chip software and chemical exports to China

THE US ECONOMY shrank at the start of the year, restrained by weaker consumer spending and an even bigger impact from trade than initially reported.

- BLOOMBERG

Gross domestic product decreased at a 0.2% annualised pace in the first quarter, the second estimate from the Bureau of Economic Analysis showed Thursday. That compared with an initially reported 0.3% decline.

The economy's primary growth engine—consumer spending—advanced 1.2%, down from an initial estimate of 1.8% and the weakest pace in almost two years. Meanwhile, net exports subtracted nearly 5 percentage points from the GDP calculation, slightly more than the first projection and the largest on record.

The slight upward revision in GDP reflected stronger business investment and a greater accumulation of inventories. Federal government spending wasn't as much of a drag as originally reported.