Washington D.C., June 27, 2024 – The US economy grew at a sluggish 1.4% annual rate in the first quarter of 2024, according to the Bureau of Economic Analysis’ latest estimate.
This marks a significant deceleration from the robust 3.4% growth recorded in the previous quarter.
This is the third estimate for Q1 GDP, incorporating more comprehensive data than previous releases.
Upward revisions to nonresidential fixed investment and government spending were partially offset by a downward revision to consumer spending.
The downward revision to GDP growth highlights potential headwinds for the US economy. Weaker consumer spending, a critical driver of growth, raises concerns.
Businesses may be cautious about expanding investment due to rising interest rates and global economic uncertainty.
The slowdown could prompt the Federal Reserve to reassess its monetary policy tightening plans in the coming months.
The downward revision to US GDP growth is a cause for concern, particularly with weaker consumer spending, a critical driver of growth.
This slowdown, likely impacted by rising interest rates, suggests the Federal Reserve’s monetary tightening stance might be having an effect on economic activity.
The Fed will be closely monitoring these trends, including consumer spending patterns, as they decide on the future path of interest rates. (courtesy: Comercio Partners Research)
