Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Overall Growth Revised Upward

The U.S. economy grew faster in the first quarter of the year than earlier estimates indicated, according to a Commerce Department report released Thursday, but there’s little optimism there the second quarter will show a big surge.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
June 29, 2017
Economic Watch: Overall Growth Revised Upward

 

3 min to read


The U.S. economy grew faster in the first quarter of the year than earlier estimates indicated, according to a Commerce Department report released Thursday, but there’s little optimism there the second quarter will show a big surge.

Ad Loading...

The gross domestic product (GDP) expanded at an annual rate of 1.4%, better than a consensus estimate from analysts. It’s also twice the 0.7% pace that was initially reported at the end of April and slightly better than the 1.2% rate reported a month ago.

Ad Loading...

The increase was due to more complete data showing consumer spending increased nearly twice as much as an earlier estimate, but was still the lowest since the second quarter of 2013. Also, exports increased while the rest of the picture was essentially unchanged.

Despite the upward revision, it was still the slowest quarter of growth since the second quarter of 2016.

The Trump administration's stated target of swiftly boosting U.S. growth to 3% remains a challenge, according to Reuters. A sustained average of 3% growth has not been seen since the 1990s. Since 2000, the U.S. economy has grown at an average 2% rate. The rate last year was 1.6%, the lowest in five years.

Hopes that the economy would step on the gas in the current second quarter have been dampened by recent disappointing numbers for retail sales, manufacturing and even housing.

“The first quarter turned out satisfactory enough and will take some of the heat off of the second quarter, where a big rebound was the initial expectation which, given continued weakness in consumer spending, has since eased back a bit,” said analysis from Econoday.

Ad Loading...

While this upward revision of the GDP is a welcome improvement, it does little to adjust the underlying storyline of the U.S. economy at the start of the year, according to Chief Economist Lindsey Piegza at Stifel Fixed Income.

“Following modest growth at the end of 2016, the U.S. economy lost significant momentum at the start of the new year, with the U.S. consumer pulling back considerably amid ample uncertainty and still-modest labor market gains,” she said. “Businesses were in part buoyed by optimism to increase investment amid anticipation of pro-growth policies, but the failure to see underlying improvement, particularly on the consumer side, left momentum stagnant and fundamentals lackluster at best.”

The report follows one earlier in the week from the International Monetary Fund, which projected the U.S. economy will grow 2.1% this year from 2016, down from its April forecast of 2.3%.

The organization, which seeks to foster global monetary cooperation and secure financial stability, also noted the U.S. would have a hard time achieving a 3% growth rate in 2018 and projected it will more likely be around 2.1% before falling to 1.9% in 2019.

More Fleet Management

Illustration showing generic graphs and stylized trucking fleet
Fleet Managementby StaffMarch 24, 2026

ACT: Trucking Volumes Rise, Capacity Tightens as Fuel Prices Cloud Outlook

ACT Research data shows volumes hitting a four-year high and supply-demand balance strengthening, but higher oil prices are undercutting tariff relief and tempering optimism.

Read More →
People looking at Wabash display at TMC
Fleet Managementby News/Media ReleaseMarch 23, 2026

Wabash Teams Physical Security With Digital Tech For Better Cargo Visibility

The patent-pending cargo solution integrates a digitally connected cargo door and an intelligent locking system with the TrailerHawk.AI technology platform.

Read More →
Cyberstop column header depicting images related to cybersecurity and rising oil prices
Fleet Managementby Ben WilkensMarch 20, 2026

From Diesel Prices to Cyberattacks: How the Iran War Is Affecting Trucking

The impact of the Iran conflict extends beyond fuel costs, bringing more fraud and cybersecurity risks to the trucking industry.

Read More →
Ad Loading...
ATA President Chris Spear.
Fleet Managementby Jack RobertsMarch 17, 2026

ATA’s Spear Warns Fuel Prices, Trade Policy, and Global Conflict Could Stall Trucking Recovery

Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.

Read More →
Illustration of author headshot with black-and-white old-fashioned rig in the background

New Entrants, Chameleon Carriers, and Safety: Is It Too Easy to Start a Trucking Company?

More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.

Read More →
Panel discussion
Fleet Managementby Deborah LockridgeMarch 12, 2026

Fleet Managers Invited to Apply for Exclusive HDT Exchange Event

HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.

Read More →
Ad Loading...
DAT iPhone Widget.
Fleet Managementby News/Media ReleaseMarch 12, 2026

DAT Launches iPhone Widget to Help Owner-Operators Find Loads Faster

New DAT One feature shows top-paying loads directly on an iPhone’s home screen, helping carriers react faster to spot-market opportunities.

Read More →
Optimal Dynamics Scale screen shot
Fleet Managementby News/Media ReleaseMarch 12, 2026

Optimal Dynamics Launches AI System to Help Carriers Choose Better Freight

Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.

Read More →
DAT March 2026 trucking conditions.
Fleet Managementby Jack RobertsMarch 12, 2026

DAT: Flatbed Demand Climbs as Van and Reefer Rates Soften

DAT Freight & Analytics data shows tightening flatbed capacity, easing produce markets, and softening van and reefer rates.

Read More →
Ad Loading...
YouTube thumbnail with Mike Roeth of NACFE saying "NACFE's Messy Middle: Which Fuel Wins?"
Fuel Smartsby Deborah LockridgeMarch 11, 2026

Run on Less “Messy Middle” Data Shows Multiple Paths Forward for Truck Powertrains [Watch]

NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.

Read More →