GDP grows “barely” by 1.3% during the first quarter of 2024 – El Financiero

The economic activity from the United States It started weak this yearBecause it is observed during the first quarter, between January and March Noticeable slowdown.

Commerce Department data shows that U.S. GDP It achieved growth of 1.3 percent at an annual quarterly rateThis is three tenths lower than the initial estimate.

This is the first amendment made by the government in its calculations for this indicator, as this has been noted Economic activity slowed between January and MarchThis is after the 3.4 percent increase recorded in the last quarter of 2023.

Data from the Bureau of Economic Analysis (BEA), which is in line with consensus forecasts among analysts, show that The US economy remains strong in the face of a discontented global economy.

On the other side, Consumer expensesIt is the indicator that represents the main driver of economic growth in the United States. It recorded a 2 percent advance between January and MarchThis is after achieving an increase of 3.3 percent during the previous quarter.

“Under the second estimate, downward revisions in consumer spending, private inventory investment, and federal government spending are offset, in part, by upward revisions in state and municipal government spending, nonresidential fixed investment, residential fixed investment, and exports.” Bea pointed out.

The US economy was able to end 2023 with an average expansion of 3.1 percent, a situation that allowed fears of a recession to dissipate after the Covid-19 pandemic and despite the tightening of monetary policy by the Federal Reserve Bank (Federal Reserve). Economic inflation.

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Federal Reserve members found that out The overall outlook for US economic activity has become somewhat more pessimistic.Due to “increased uncertainty and increased downside risks.”

In addition, the Federal Reserve has kept the interest rate at a level between 5.25 and 5.50 percent since July last year. This represents the highest level since 2001.

Inflation provides a “respite” to the US economy

The inflation rate in the US economy fell by a tenth during the month of April, reaching 3.4%, after two months of consecutive increases.

The US Bureau of Labor Statistics (BLS) has made this clear Consumer prices rose three-tenths Compared to March, this represents one-tenth less than the monthly increase recorded in March compared to February.

While core inflation It fell by two-tenths internally to 3.6 percent On a monthly basis, it rose three-tenths.

This data could give the US Federal Reserve some comfort And its plans to cut interest rates sometime this year.

Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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