US real gross domestic product grew at an annual rate of 1.2% in the first quarter, according to the second estimate of GDP growth released today by the US Commerce Department.

The new estimate is up from an “advance” estimate that pegged growth at just 0.7%.

In the fourth quarter of 2016, real GDP increased 2.1%.

MarketWatch reported the first-quarter slowdown was largely the result of a temporary pullback in consumer spending and the production of business inventories. However, both look to be stronger now.

“While business investment is likely to make a smaller contribution to growth in the second quarter, we still expect GDP growth to be between 2.5% and 3%,” Michael Pearce of Capital Economics wrote in a note to clients.