GDP: US economy grew at a slower pace than initially thought in Q1
GDP: US economy grew at a slower pace than initially thought in Q1
Slower U.S. Economic Growth in Q1 According to Revised GDP Figures
Revised GDP Growth Rate
The U.S. GDP grew at a revised annualized rate of 1.3% in Q1, a decrease from the initial estimate of 1.6%, aligning with economist predictions.
Consumer Spending Revision
The downward revision was largely due to a decrease in consumer spending, which grew at 2%, down from the previously estimated 2.5%.
Comparison with Previous Quarter
This growth rate is significantly lower than the 3.4% GDP growth recorded in the fourth quarter.
Economic Outlook
Despite the slowdown, experts like Oren Klachkin suggest that underlying economic momentum remains strong, anticipating continued growth through 2024.
Market Sensitivity
The slower growth comes at a time when markets are cautious about signs of overheating, which could influence Federal Reserve policies due to persistent inflation concerns.
What was the primary reason for the downward revision of the first quarter GDP growth rate?
The primary reason for the downward revision of the first quarter GDP growth rate was a decrease in consumer spending. The Bureau of Economic Analysis (BEA) reported that the economy grew at an annualized pace of 1.3% during the first quarter, down from the initial reading of 1.6% growth in April. This update primarily reflected a downward revision to consumer spending, which grew at 2% in the first quarter, down from the prior reading of 2.5%.
How does the first quarter's revised GDP growth rate compare to the growth rate initially reported in April?
The first quarter's revised GDP growth rate for the U.S. economy is 1.3%, which is lower than the initial report in April that estimated the growth at 1.6%. This revision indicates a slowdown in economic growth, primarily due to a decrease in consumer spending.