Slower-Than-Predicted GDP Growth in Q1 2024: What You Need to Know

BySamantha Jones

Apr 25, 2024

US Economy Expands 1.6% in First Quarter, Falling Short of Expectations Due to Price Pressures Impacting Consumer Spending

In the first quarter of 2024, the U.S. economy experienced slower growth compared to the previous quarter of 2023 and below what economists had predicted. The Gross Domestic Product (GDP) grew at an annualized rate of 1.6% in the first quarter, according to advanced estimates from the Bureau of Economic Analysis released on Thursday.

Despite a growth rate of 1.6%, which is lower than the expected 2.5%, some key highlights of Q1 2024 GDP include a decline in inflation rates. The Core Personal Consumption Expenditure (PCE) price index, the Federal Reserve’s preferred inflation gauge, slowed from 3.4% in Q4 2023 to 3.7% in Q1 2023, exceeding the expected 2%.

Real consumer spending growth also slowed from 3.5% to 2.5%, falling short of the expected 2.8%. Market reactions to the GDP print included a slight increase in the U.S. dollar index and a rise in Treasury yields, with the 2-year yield reaching 4.95% as traders adjusted their expectations for Fed rate cuts due to higher-than-expected inflation figures

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.