2024-05-02 10:01:59
The US economy expanded by 1.6% at an annual rate in the first quarter, according to a report from the country’s Commerce Department, which presented preliminary data.
As Day.Az reports with reference to Interfax, analysts on average predicted an increase of 2.5%, according to information from Trading Economics.
The GDP growth rate slowed significantly compared to the fourth quarter, when it amounted to 3.4%.
Consumer spending, which accounts for two-thirds of the US economy, increased 2.5% in January-March (+3.3% in the previous quarter). The growth of government spending slowed to 1.2% from 4.6% in October-December.
The rate of increase in exports decreased to 0.9% from 5.1%, imports accelerated to 7.2% from 2.2%.
Capital investment in non-residential assets increased by 2.9% (+3.7% in the previous quarter), including in intellectual property – by 5.4%, in equipment – by 2.1%. Investment in the housing sector jumped 13.9%.
The PCE Core index (changes in consumer prices excluding food and energy costs), which the Federal Reserve closely monitors when assessing inflation risks, rose 3.7% in the first quarter from the previous three months. In the fourth quarter of last year, the index increased only 2%.
At the end of 2023, the US economy increased by 2.5% after rising by 1.9% a year earlier.
The information presented by the Department of Commerce on Thursday is the first of three estimates of changes in US GDP. The publication of revised data for the first quarter is scheduled for May 30.
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