US gross domestic product was revised up notably to a 2% annualized advance in the first quarter, data showed Thursday. 

The government’s third estimate of GDP for the period reflected upward revisions to exports and consumer spending. Household spending, the engine of the US economy, rose at a 4.2% pace — the strongest in nearly two years — as services outlays were adjusted higher.

Meanwhile, key inflation gauges watched closely by the Federal Reserve were revised down slightly. The personal consumption expenditures price index excluding food and energy rose at a 4.9% pace in the first quarter. 

The government’s other main measure of economic activity, gross domestic income, painted a different picture. While improved from an earlier estimate, GDI fell at a 1.8% pace in the first quarter, marking a second-straight decline. 

Averaging GDI and GDP, the economy grew just 0.1%.