Economic Growth Slows in Q1, with GDP Below Expectations

Staffing Industry Analysts (04/25/24)

In the first quarter of the year, US gross domestic product (GDP) growth decelerated to an annual rate of 1.6%, down from 3.4% in the previous quarter, according to the US Bureau of Economic Analysis. This growth rate was lower than the consensus forecast of 2.2%, reported by US News and World Report. The slowdown primarily resulted from decreased consumer spending, exports, and government spending, although residential fixed investment and imports saw acceleration. Despite inflation concerns and a strong labor market, the Federal Reserve may view this softer GDP growth positively, potentially delaying interest rate cuts, according to a post by Erik Lundh, principal economist at The Conference Board. However, revisions to GDP data in recent quarters suggest caution, with a second estimate due later in May.

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