NEW YORK (CNNMoney.com) -- The economy grew at a slower pace in the first three months of this year than previously estimated, according to a government report Friday.
Gross domestic product, the broadest measure of the nation's economic activity, grew at an annual rate of 2.7% in the first three months of 2010, according to the Commerce Department, down from the previous reading of a 3% rise.
Economists expected the third reading of GDP during the first quarter to hold unrevised at 3%, according to a consensus of economist opinion from Briefing.com.
The Commerce Department said increased personal spending continued to stimulate the economy, but those advances were partly offset by "a larger decrease in state and local government spending."
The downward revision "leaves the current economic recovery looking even less impressive compared with previous ones," said Paul Dales of Capital Economics in a research note.
While Dales expects growth in the second quarter to pick up to an annual rate between 3% and 4%, he said that will not be sustainable.
"Growth will soon slow as the rebound in world trade fades, inventory rebuilding slows and the size of fiscal injection shrinks," he said. "Overall, the U.S. economy may be performing much better than those in Europe, but this is still the weakest and longest economic recovery in U.S. post-war history."
During the last three months of 2009, economic activity grew at an annual pace of 5.6%.
Even Carl Icahn, one of President-elect Donald Trump's biggest cheerleaders on Wall Street, thinks the post-election exuberance in the stock market has gotten a bit out of hand. More
Republican leaders keep saying Obamacare is hurting the economy and killing jobs, but there's scant evidence for it. In fact, a number of studies show that the economy has been growing. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The Los Angeles city attorney is suing four major retailers over claims that they deliberately inflated the original price on some items that misled customers into thinking they were getting a better deal. More