Economic growth slows
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Important points:
- The US economy grew by 1.3% during the first quarter, a sharp decline compared to the last three months of 2023.
- We have not seen such a low figure since the second quarter of 2022, when GDP recorded a loss of 0.6%.
- Markets turned red Thursday morning, with the Dow Jones down 1.1%.
Finally, the United States economy It grew at a slower pace than initially thought, rising just 1.3% in the first quarter.
Experts expected that the GDP (gross domestic product) shows an increase of 1.6% in the first three months of the year.
The difference was in– Downward review of consumer spending“, because it grew in the first quarter by 2%, that is, less than the first reading, which saw an increase of 2.5%.
On the other hand, the percentage was 1.3% Much lower than the GDP growth in the fourth quarter of last yearWhich amounted to 3.4%. In parallel, it was also the lowest figure since the second quarter of 2022, when GDP reached a loss of 0.6%.
How will growth continue in the United States?
Goldman Sachs analysts expect second-quarter GDP to grow 3.2% year-on-year, while the Atlanta Federal Reserve's GDP report estimates a 3.5% jump.
Bank of America said they saw no concerns about the recently announced numbers: “The bottom line is that the economy moderated a little in the first quarter, but remained stable overall“.
What's happening in the markets?
Despite expert opinion, Wall Street woke up to major declines after the GDP news: Dow Jones fell 1.1%While the Standard & Poor's 500 and Nasdaq indices fell by 0.4% and 0.5%, respectively.
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