Economy Slows Down: GDP Growth Rate Revised to 1.3% for Q1″.

Q1 Economic Growth in US Falls Short of Initial Estimates

The Bureau of Economic Analysis has released its second estimate of first quarter US gross domestic product (GDP) and the results are not as optimistic as initially thought. The economy is now projected to grow at an annualized pace of 1.3%, down from the initial reading in April of 1.6%. This revision was primarily due to a downward adjustment to consumer spending, which grew at 2% compared to a prior reading of 2.5%.

Compared to the fourth quarter GDP, which was revised up to 3.4%, the first quarter growth was significantly slower. Investors are concerned that red-hot growth could lead to increased inflation, and the Federal Reserve is closely monitoring economic indicators. Despite this slowdown, economists like Goldman Sachs and the Atlanta Fed still expect robust growth in the second quarter.

Michael Gapen, a US economist at Bank of America, believes that while the economy moderated somewhat in the first quarter, there is optimism for growth moving forward. In sports news, the Alamo Bowl between Arizona Wildcats and Oklahoma Sooners featured a United States flag on the field during the national anthem on December 28, 2023. Yahoo Finance reporter Josh Schafer covered this event and provides in-depth analysis of the latest stock market news and events. For more financial and business news, visit Yahoo Finance for updates.

Leave a Reply