The advance estimate of Q1 GDP showed a 2.0% gain after a 0.5% increase in the previous quarter, with personal spending up 1.6% after a 1.9% gain.
There were positive contributions from nonresidential fixed investment, inventory growth and government spending that were partially offset by negative contributions from residential fixed investment and net exports.
The GDP price index rose by 3.6% after a 3.7% gain in the previous quarter. The PCE price index and core PCE price both accelerated from Q4.
The initial estimate for Q2 GDP from the Atlanta Federal Reserve's GDP nowcast is for a 3.7% gain.
Personal income rose by 0.6% in March after a flat reading in February while personal consumption expenditures rose by 0.9% in March after a 0.6% increase.
After an adjustment for a 0.7% increase in the PCE price index, real consumption was up 0.2% in March after a 0.3% increase in February. The year-over-year rate for the overall price index jumped to 3.5% from 2.8%.
Core PCE prices rose by 0.3% in the month after a 0.4% gain while the year-over-year rate accelerated to 3.2% from 3.0%.
The employment cost index rose by 0.9% in Q1 after a 0.7% gain in the previous quarter, reflecting faster growth in both wages and benefits.
The Chicago PMI fell to 49.2 in April from 52.8 in March, the last regional manufacturing reading for the month. The ISM's national index is due to be released on Friday.
Initial jobless claims decreased by 26,000 to 189,000 in the week ended April 25, the lowest level in over 50 years, trimming the four-week moving average by 3,500 to 207,500.
Insured claims fell by 23,000 to 1.785 million in the employment survey week ended April 18. Insured claims were at level of 1.816 million in the employment survey week ended March 14.
The Conference Board's measure of leading indicators fell by 0.6% in March after a 0.3% increase in February, led by negative contributions from building permits, business conditions expectations and stock prices. The Conference Board said that the LEI suggests a further weakening in the US economy is possible in the coming months due to higher oil prices and supply chain issues.
Natural gas stocks rose by 79 billion cubic feet to 2.142 trillion cubic feet in the week ended April 24, up 5.7% from a year earlier and 7.7% higher than the seasonal average for the current week over the previous five years.