The US economy contracted in the first three months of the year, just not as much as previously estimated.
The Commerce Department says gross domestic product shrank at a seasonally adjusted annual rate of 0.2 per cent from January through March. That's better than last month's estimate of a 0.7 per cent decrease.
Harsh winter weather slowed spending by keeping US consumers away from shopping malls and car dealerships.
The US trade deficit ballooned, slicing growth by the most since 1985 as exports fell and imports rose. Imports increased 7.1 per cent in the first quarter, while exports fell 5.9 per cent.
Yet consumers stepped up their spending in May. Sales at retail stores and restaurants jumped 1.2 per cent as shoppers spent more on clothes, building materials and furniture.
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