From the Joint Economic Committee:

Joint Economic Committee
Robert F. Bennett, Vice Chairman
GDP Grew at a 3.5% Annualized Rate in the 1st Quarter
The Bureau of Economic Analysis released a revised measure of inflation-adjusted (“real”) gross domestic product (GDP) for the first quarter of 2005 (at http://www.bea.doc.gov/bea/dn/home/gdp.htm ). Annualized GDP growth in the 1st quarter was revised up from an earlier estimate of 3.1% to 3.5%. In the 4th quarter of 2004, real GDP grew at a 3.8% annualized rate.
Highlights:
Ø The major contributors to GDP growth in the 1st quarter were personal consumption expenditures (which grew 3.6%), private inventory investment (which added 0.78 percentage point to the 1st-quarter change in real GDP), exports (which grew 7.2%), residential fixed investment (which grew 8.8%), and equipment and software investment (which grew 5.6%).
Ø The slight deceleration in GDP growth from 3.8% in the 4th quarter to 3.5% in the 1st quarter reflected slower growth in equipment and software investment (from 18.4% in the 4th quarter to 5.6% in the 1st) and in personal consumption expenditures (from 4.2% to 3.6%). These slowdowns were partly offset by faster growth in exports, private inventory investment, and residential fixed investment and by slower import growth.
Ø Year-over-year inflation in the personal consumption expenditure price index excluding food and energy, the Fed’s preferred measure of consumer price inflation, remained at 1.6% in the 1st quarter, the same rate as in the 4th quarter.