Economy dips at slightly lower pace in 1Q

WASHINGTON (AP) — The economy tumbled at a 5.5 percent pace in the first quarter, but appears to be doing better now, even though heavy layoffs persist.

The revised reading on gross domestic product, released Thursday by the Commerce Department, showed the economy from January through March didn't fall as deeply as the 5.7 percent annualized decline reported a month ago. Economists expected the government would stick with its previous estimate.

A separate government report found new jobless claims jumped unexpectedly last week, while continuing claims for unemployment benefits rose more than expected. The data show jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.

The main forces behind the small upgrade in first-quarter GDP had nothing to do with an improving job market: businesses didn't cut stockpiles of goods as much and imports dropped more sharply than previously estimated.