US economy 'weak': GDP grows 'barely' 1.3% during the first quarter of 2024

economic activity from the United States started weak this yearbecause during the first quarter, between January and March, it is observed a notable slowdown.

Data from the Department of Commerce show that the US Gross Domestic Product (GDP) had a growth of 1.3 percent at an annualized quarterly ratea level that is three tenths lower than the preliminary estimate.

This is the first adjustment that the Government makes in its calculations of this indicator, since it is observed that Economic activity slowed between January and Marchafter the 3.4 percent increase that was recorded in the last quarter of 2023.

The data from the Bureau of Economic Analysis (BEA), which corresponds to the expectation of the consensus made among analysts, shows that The US economy remains strong in the face of the resentful global economy.

On the other hand, consumer spendingan indicator that represents the main engine of economic growth in the United States, recorded an advance of 2 percent between January and Marchafter reaching an increase of 3.3 percent during the previous quarter.

“Under the second estimate, downward revisions in consumer spending, investment in private inventories, and federal government spending were offset, in part, by upward revisions in state and municipal government spending, investment non-residential fixed, residential fixed investment and exports,” BEA noted.

The US economy managed to close 2023 with an average expansion of 3.1 percent, a situation that has allowed fears of a recession to be dispelled after the COVID-19 pandemic and despite the tightening of monetary policy by the Federal Reserve (Fed). to contain inflation.

The members of the Federal Reserve found that The overall outlook for US economic activity has become a bit more pessimistic.due to “increasing uncertainty and increased downside risks.”

In addition, the Fed has kept the interest rate at a level between 5.25 and 5.50 percent since July of last year. This represents the highest level since 2001.

Inflation provides 'a respite' to the US economy

Inflation in the United States economy fell one tenth during April, to the level of 3.4 percent, after two months of consecutive increases.

The United States Bureau of Labor Statistics (BLS) detailed that consumer prices increased three tenths Compared to March, this represents one tenth less than the monthly increase registered in March compared to February.

While core inflation fell two tenths internally, to 3.6 percent and in monthly terms it rose three tenths.

These data could give the US Federal Reserve some respite and its plans to lower interest rates sometime this year.