US real gross domestic product grew at an annual rate of 2.3% in the first quarter, according to the “advance” estimate of GDP growth released today by the US Commerce Department. This is down from 2.9% GDP growth in the fourth quarter of 2017.

However, higher federal spending levels and elevated confidence should help growth move higher during the rest of the year, according to Brian Schaitkin, senior economist at The Conference Board.

“Consumer spending growth slowed in the first quarter,” Schaitkin said in a statement. “Individual tax cuts should add to consumer spending power later in the year, as could accelerating wage growth particularly with the pickup in today’s Employment Cost Index data. Soft retail sales numbers to begin the year contributed to a larger inventory build, adding to GDP growth and partially offsetting the slowdown in consumption.”

MarketWatch reported the economy already shows signs of speeding up again after the usual winter lull, though it will take a few more weeks to get a better read. The economy is benefiting from a roaring labor market, rising pay and higher business investment. The recent Trump tax cuts have added another boost. Nevertheless, inflation has been creeping higher and that may push the Federal Reserve to raise interest rates more aggressively, a strategy that could slow the economy and cause further declines in the stock market.