The U.S. economy is expanding at a 1.3% annualized rate in the second quarter after the government said on Friday domestic growth in the first quarter came in at 3.2%, the Atlanta Federal Reserve’s GDPNow forecast model showed on Monday.

The Atlanta Fed’s GDP program’s final estimate on gross domestic product in the first three months of 2019 was 2.7%.

The next GDPNow update is Wednesday.

The Atlanta Fed projection came just hours after the government said U.S. consumer spending increased by the most in more than 9-1/2 years in March as households stepped up purchases of motor vehicles, but price pressures remained muted, with a key inflation measure posting its smallest annual gain in 14 months.

The surge in consumer spending reported by the Commerce Department on Monday sets a stronger base for growth in consumption heading into the second quarter after it slowed sharply in the first three months of the year.

It further allayed concerns about the economy’s health, which had been brought to the fore by a temporary inversion of the U.S. Treasury yield curve last month. Tame inflation, however, supported the Federal Reserve’s recent decision to suspend further interest rate increases this year.

Fed officials are scheduled to meet on Tuesday and Wednesday to assess the economy and deliberate on the future course of monetary policy. The U.S. central bank in March dropped forecasts for any interest rate increases this year, halting a three-year policy tightening campaign. The Fed raised borrowing costs four times in 2018.