First-Quarter GDP Grows 3.8%, Commerce Reports

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he U.S. economy grew at an annual rate of 3.8% in the first quarter, the Commerce Department said Wednesday.

The gross domestic product level was greater than the preliminary 3.5% rate reported May 26 and also topped analysts’ estimates of 3.7% growth for the quarter, Bloomberg reported.

It follows a 3.8% growth figure for the fourth quarter of 2004, Commerce said.

GDP is the total value of goods and services produced in the United States. The total amount rose to $11.1 trillion when annualized and adjusted for inflation.

Without that inflation adjustment, the economy grew at a 6.7% rate, the strongest in a year, Bloomberg said.

The economy grew at a 4.4% rate in 2004, the strongest since 1999.

Bloomberg also reported that the Federal Reserve is likely to raise the benchmark core interest rate a quarter-point to 3.25% at the conclusion of its two-day meeting, which starts today.