The US government has said the country's economy shrank at an annual rate of 5.5% in the first quarter of this year. This was not as bad as the previous estimate of a 5.7%.
The Commerce Department's final estimate of gross domestic product (GDP) still showed a massive decline, on the heels of a 6.3% slide in the fourth quarter of 2008.
The new estimate reflected a slightly better reading on consumer spending and lower imports, partly offset by declines in inventories and construction.
The department said companies cut inventories at a slightly less vigorous rate in the first quarter than thought previously. Business inventories declined at an $87.1 billion rate instead of $91.4 billion, meaning they subtracted less from growth.
Reflecting the weak pace of global economic activity, exports plunged at a 30.6% rate in the first quarter instead of the 28.7% estimated a month ago. That was the steepest drop in foreign sales in 40 years. Imports dropped at a 36.4% rate, the steepest since the summer of 1947.
Overall business investment plunged at a record 37.3% rate during the first quarter, while spending on homebuilding fell 38.8% for its biggest quarterly tumble since early 1980.
Nonetheless, corporate profits grew at a 1.4% rate during the first quarter, slightly better than the 1.1% rise estimated a month ago, after falling 10.7% in the final three months of last year.
