US GDP grows by 1.4% annually between January and March 2024 – El Financiero

the American economy The US government said on Thursday that the economy expanded at an annual pace of 1.4% in the January-March period, the slowest quarterly growth since the spring of 2022. Consumer spending grew just 1.5%, less than the 2% expected, in a sign that high interest rates It may negatively affect the economy.

The Ministry of Commerce had estimated this earlier. gross domestic product The economy's total production of goods and services grew by 1.3 percent in the last quarter.

Thursday's report showed the slowdown from January to March was mainly due to two factors: higher imports and lower inventories.

After growing at a robust annual pace of more than 3% in the second half of 2023, consumer spending slowed sharply in the fourth quarter. Spending on appliances, furniture and other goods Annual spending fell 2.3 percent, while spending on travel, restaurant meals and other services rose 3.3 percent.

Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, called the decline in consumer spending “a cause for concern.” Consumers account for 70% of economic activity in the United States.

The US economy, the world's largest, has proven surprisingly resilient in the face of high interest rates. the Federal Reserve (Fed) And raised the reference interest rate 11 times in 2022 and 2023For a maximum of 23 years to try to control the worst inflation rate in four decades. Analysts have warned that raising interest rates could push the economy into recession.

But that didn't happen. The economy has continued to grow, albeit at a slower pace, and businesses continue to hire. In May, 272,000 jobs were created, despite the unemployment rate rising for the second month in a row, to a level that is still low at 4 percent. Meanwhile, the inflation rate fell from 9.1% in 2022 to 3.3%, still above the Federal Reserve's target level of 2%.

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The state of the economy is sure to be a major topic Thursday night. When the president Joe Biden debates Donald Trumpthe presumptive Republican presidential nominee.

Aileen Morales

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

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