(Washington) United States GDP growth in the first quarter of 2024 slowed more than initially announced, to 1.3% annualized instead of 1.6%, according to the second estimate released Thursday by the Commerce Department .
Published yesterday at 8:42 a.m.
“The update mainly reflects a downward revision in consumer spending,” particularly for cars, the Commerce Department said in its press release.
This revision is, however, a little less strong than expected, since analysts anticipated growth of 1.2%, according to the Market Watch consensus.
The final estimate will be published on June 27.
GDP (gross domestic product) growth was 3.4% in 4e quarter 2023.
The United States publishes its growth at an annualized rate, which compares GDP to that of the previous quarter and then projects developments over the entire year at this rate.
But simply comparing it to the previous quarter, as other advanced economies do, growth is revised to 0.3%, up from 0.4% in the first estimate.
These data are adjusted without inflation, that is, the calculation excludes the effects of price increases.
“Economic activity remains robust, fueled by consumers’ continued ability and willingness to spend,” commented Lydia Boussour, economist for EY Parthenon.
“But the momentum is gradually slowing,” she added, noting that “younger and lower-income consumers are more careful (about their spending) and businesses are reassessing their labor needs as “They face higher financing costs and lower demand.”
GDP growth in the United States disappointed in the first quarter of 2024, reaching its lowest level in almost two years, after a year 2023 which had surpassed all expectations and thwarted predictions of recession. It had even accelerated, to 2.5%, compared to 1.9% in 2022.
Consumption remains the engine of growth in the world’s largest economy, representing more than two-thirds of GDP. American households spent more money on health care, financial services and insurance.
The President of the New York Fed, John Williams, indicated during a speech on Thursday that he anticipates GDP growth of between 2.00 and 2.50% for 2024.
In 2020 and 2021, US GDP yo-yoed, breaking records in one direction then the other.
It first recorded its biggest decline since 1946 (-3.5%) due to COVID-19, with even two months of recession, then the strongest growth since 1984 (+5.9%).
