GDP Rises 3.5% in 1Q; Level is Higher Than Previous Estimate

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he U.S. economy grew at an annual rate of 3.5% in the first quarter, faster than a previous 3.1% estimate in late April, the Commerce Department said Thursday.

The first-quarter gross domestic product figure was just below analysts' estimate of 3.6% growth, Bloomberg reported.

The level 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 $11.09 trillion when annualized and adjusted for inflation.

The U.S. trade deficit subtracted 0.7% from first-quarter growth, Bloomberg reported. That compared with almost 1.5% estimated in the previous report issued April 28.

The stronger GDP figure may help ease concern that higher energy prices will dampen economic growth, Bloomberg said.

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