US economy grew at rate less than expected in first quarter

Washington [US], April 25 : The US grew at an annual rate of 1.6 percent in the first quarter of 2024, according to the advance estimate released by the country's Bureau of Economic Analysis.

In the fourth quarter of 2023, real GDP increased 3.4 percent.

The GDP estimate released today is subject to further revision. The second estimate for the first quarter, based on more complete source data, will be released on May 30, 2024.

As per reports, the growth figure from the Bureau of Economic Analysis was far below analysts' expectations of a 2.5 per cent rise.

The increase in real GDP in the first quarter of 2024 primarily reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a decrease in private inventory investment.

Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending.

These movements were partly offset by an acceleration in residential fixed investment. Imports accelerated during the period.

Coming to disposable personal income, it increased USD 226.2 billion, or 4.5 percent, in the first quarter, compared with an increase of USD 190.4 billion, or 3.8 percent, in the fourth quarter. Real disposable personal income increased 1.1 percent, compared with an increase of 2.0 percent.

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