US economic growth in the first quarter was revised up by a tenth of a point to a 1.9% annual pace, the government said in its final estimate of output.
The Commerce Department's slight upward revision in gross domestic product (GDP) from the prior estimate of 1.8% growth was just above analyst expectations for no change in the figure.
But the January-March growth rate confirms a sharp deceleration of the world's largest economy from a 3.1% pace in the fourth quarter of 2010.
The department's third estimate for GDP reflected a downward revision to imports and an upward revision to inventory investment, which were offset by downward revisions to exports, to housing and state and local government spending.
Consumer spending remained the key driver of economic activity, rising at a 2.2% pace and contributing 1.52 percentage points to growth.
Business investment and inventory building also contributed to growth, but government and housing spending pulled down the pace of expansion. Analysts expect some improvement in the second quarter which began in April but not enough to make a major change in the unemployment rate, which was 9.1% in May.
Orders growth eases slowdown fears
Separate figures showed that new orders for US manufactured goods and a gauge of business spending plans rose in May, easing fears of a sharp slowdown in factory activity.
Durable goods orders increased 1.9% after dropping 2.7% in April, the Commerce Department.
An improvement across the board in May, and revisions to April's figures that showed smaller declines than previously reported, pointed to underlying strength in a sector that has powered the economic recovery. Economists had expected durable goods orders, a leading indicator of manufacturing health, to rise 1.5% in May.
Non-defence capital goods orders excluding aircraft, a closely watched indicator for business spending, rebounded to increase 1.6% last month after a revised 0.8% fall in April.
