Continued consumption by average Americans was the next biggest contributor. But in contrast to the fourth quarter, when people were buying big-ticket items such as cars, last quarter's spending focused on less expensive items such as clothes, shoes and food, government figures show.
President Bush used the occasion of Friday's GDP report to tout further tax cuts.
The president called the 5.8% figure "a very encouraging sign," but added: "I am not content. We've got to do more." The "more" that's needed, according to Bush, is to make the administration's 10-year, $1.3-trillion tax cut permanent. "Tax relief is an incredibly important part of this recovery," he said.