US GDP Growth Slows More Than Expected in First Quarter

US GDP Growth Slows More Than Expected in First Quarter

The US economy grew at an annualized rate of 1.3% in the first quarter of 2024, down from the previously reported 1.6%, according to the Commerce Department. This slowdown was primarily attributed to a downward revision in consumer spending, which rose by 2.0%, lower than the initial estimate of 2.5%. The revised growth rate marks a significant deceleration from the 3.4% expansion observed in the final quarter of 2023.

The slower growth comes amid heightened concerns about inflation and its potential impact on economic performance. The personal consumption expenditures price index, a key measure of inflation, was revised down to 3.3% for the first quarter. Despite the downward revision, business investment and residential investment showed stronger than estimated growth, partially offsetting the slowdown in consumer spending. Analysts suggest that the soft start to the year is not expected to continue into the second quarter, supported by a strong labor market and resilient economic fundamentals.

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