Q1 Update Reveals , US Economy Grew Slower , Than Initially Thought.
Yahoo Finance reports that the United States economy grew at a slower rate than initially thought during the first quarter of 2024.
According to the Bureau of Economic Analysis' (BEA) second estimate of the Q1 gross domestic product (GDP), the economy grew at 1.3%, down from 1.6% reported in April.
The BEA said the updated numbers , "primarily reflected a downward revision to consumer spending.".
Personal consumption in Q1 grew at just 2%, down from the 2.5% previously reported.
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The weaker headline growth statistic looks discouraging, but it belies solid underlying momentum as the economy’s core — private domestic sales to domestic purchasers — showed a healthy expansion of 2.5% annualized, Oren Klachkin, Nationwide financial markets economist, via Yahoo Finance.
Yahoo Finance reports that many economists do not perceive the slowdown as the beginning of a broader trend.
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Before the latest numbers were released, Goldman Sachs had forecast 3.2% annualized growth in Q2.
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At the same time, the Atlanta Fed's GDPNow has projected Q2 annualized growth of 3.5%.
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Monthly data beyond March generally point to a continued, albeit gently cooling, economic expansion, Oren Klachkin, Nationwide financial markets economist, via Yahoo Finance.
We anticipate continued GDP gains this year and a healthy advance in 2024 overall, Oren Klachkin, Nationwide financial markets economist, via Yahoo Finance
