A preliminary estimate released by the Bureau of Economic Analysis (BEA) on Thursday indicates that the US economy expanded at a modest 1.6 per cent annual rate in the first quarter of 2024.
This signifies a notable deceleration from the robust 3.4 per cent growth witnessed in the final quarter of 2023.
It’s worth noting that this preliminary estimate is based on incomplete data and is subject to potential revisions in the forthcoming weeks. A more comprehensive report is scheduled for release on May 30th, 2024, according to the statement.
Despite the overall slowdown, consumer spending emerged as a positive aspect, with an uptick driven by expenditures on services such as healthcare and finance. However, spending on goods, particularly vehicles and energy products, experienced a decline, as outlined in the report.
Furthermore, the report underscores a surge in housing investment, propelled by new single-family home construction and real estate transaction fees.
The price index for gross domestic purchases rose by 3.1 percent, while the Personal Consumption Expenditures (PCE) price index witnessed a 3.4 percent increase. Even after excluding food and energy, inflation persisted at an elevated level of 3.7 percent.
