U.S. economic growth in the first quarter was stronger than earlier thought, as corporate profits rose moderately.

The U.S. Commerce Department said today gross domestic product grew at a 3.8% annual rate in the first quarter, matching the rate of expansion in the fourth quarter.

First-quarter growth was originally estimated at 3.1%, then pegged at 3.5% in the government’s first revision.

The housing sector provided a strong lift to the overall economy in the first quarter. Residential fixed investment climbed 11.5%, raised from a previously estimated 8.8%, as low interest rates continued to propel home-buying and construction.

Business spending climbed 4.1%, higher than the earlier estimated 3.5% increase but below the fourth-quarter’s 14.5% surge.

First-quarter corporate profits after taxes also grew faster than first thought, increasing 1.2% after the earlier estimate of a 1% advance. Earnings grew 12.5% in the fourth quarter. Year over year, profits climbed 8.3% as compared to the first quarter of 2004.