The Gross Domestic Product (GDP) of the United States grew 1.6% in the first quarter of 2024 in annualized terms, thus losing some strength compared to the 3.4% evolution observed in the 4th quarter of last year, according to data from the first preview of the indicator released by the Department of Commerce this Thursday.
This performance was below the 2.4% expected by the LSEG analyst consensus.
Compared to the fourth quarter, the slowdown in real GDP in the first quarter mainly reflected slowdowns in consumer spending, exports and state and local government spending and a contraction in federal government spending. These movements were partially offset by an acceleration in residential fixed investment. Imports also accelerated.
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GDP in current dollars increased by a 4.8% annual rate in the first quarter, equivalent to US$327.5 billion, to a level of US$28.28 trillion. In the fourth quarter, GDP growth had been 5.1%, equivalent to US$346.9 billion.
The personal consumption expenditures (PCE) price index increased 3.4%, compared to a 1.8% increase in the previous quarter. Excluding food and energy prices, the core PCE price index increased 3.7%, compared to a 2.0% increase.
Personal income in current dollars increased by $407.1 billion in the first quarter, compared with an increase of $230.2 billion in the fourth quarter of last year. This mainly reflected increases in salaries and transfers.
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Disposable personal income increased by $226.2 billion, or 4.5%, in the first quarter, compared to an increase of $190.4 billion (3.8%) in the previous quarter.
Personal savings were US$755.7 billion in the first quarter, compared to US$815.5 billion in the fourth quarter of 2023. The personal savings rate – personal savings as a percentage of disposable personal income – was 3.6% in the first quarter, compared to 4.0% in the fourth quarter.
