Investing.com — The U.S. economy expanded by less than anticipated in the first quarter, while a key measure of inflation slowed by more than initially expected.

The second estimate of U.S. growth in the three months to March came in at 1.3%, down from the first-time reading of 1.6% and slower than the growth of 3.4% registered in the fourth quarter of 2023.

Meanwhile, the quarterly personal consumption expenditures index was downwardly revised to 3.3% from the original mark of 3.4%. Stripping out volatile items like food and fuel, the so-called “core” PCE index was also updated to 3.6% from 3.7%, potentially relieving some concerns over the Federal Reserve’s ongoing push to corral U.S. inflation back down to its 2% target level.

Elsewhere, the pace of real consumer spending growth during the quarter was lowered to 2.0%. Advanced estimates had put the level at 2.5%.