US GDP shows slower first-quarter economic growth

The US economy is likely at an inflection point as consumer spending has weakened in recent months.

WASHINGTON (Armfalcon.com) – US economic growth slowed significantly in the first quarter of this year, amid the double whammy of rising interest rates and the worst inflation in decades.

Gross domestic product (GDP), which measures all goods and services produced, rose 1.1 percent on an annual basis in the first three months in the United States, according to data released by the Department of Commerce on Thursday (27/4/2023).

That number is far lower than the 2.6 percent growth in the fourth quarter of last year. It was also less than the 2.0 percent growth predicted by economists surveyed by Dow Jones.

Also read: The US dollar strengthened slightly on the prospect of an increase in the Fed’s interest rate

“The US economy is likely at an inflection point as consumer spending has weakened in recent months,” said Jeffrey Roach, chief economist at LPL Financial, as quoted by NBC News.

“Characteristic backwards The (less-than-normal advance) of the GDP report may mislead the market because we know consumers still shopped in January but since March, have pulled back as consumers have grown pessimistic about the future,” Roach said.

Thursday’s GDP release (27/4/2023) is the Department of Commerce’s “preliminary” estimate.

source: www.antaranews.com

Source link