A report from
the Commerce Department revealed on Thursday that the U.S. economy advanced less than initially estimated in the first quarter of 2024, primarily
reflecting a downward revision to consumer spending.
According to
the second estimate, the U.S. gross domestic product (GDP) grew at an annual
rate of 1.3 per cent in the first quarter, compared to a 1.6 per cent q-o-q growth reported in the advance
estimate.
Economists had anticipated
the growth rate to be revised
to 1.3 per cent.
In the previous
quarter, the economy expanded by 3.4 per cent q-o-q.
The first-quarter
increase in real GDP was mainly due to gains in consumer spending, residential
fixed investment, non-residential fixed investment, and state and local
government spending. These increases, however, were partly offset by a decline
in private inventory investment. Meanwhile, imports, which are a subtraction in
the calculation of GDP, rose.