Investing.com – The Gross Domestic Product () of the United States increased by 1.6% in the first quarter of 2024 considering the adjusted annual rate, according to the first reading released by the Bureau of Economic Analysis this Thursday, 25th. The consensus projection indicated 2.5% and, in the fourth quarter, GDP rose 3.4%.
“The increase observed in real GDP was driven mainly by the increase in consumer spending, residential and non-residential fixed investments, in addition to spending by state and municipal governments”, highlights the Bureau in a note. “These factors were partially offset by a decline in investment in private stocks. Imports, which reduce the GDP calculation, also showed growth”, he adds in the document.
In the quarterly comparison, the slowdown in the first three months of this year is related to the decrease in the expansion of consumer spending, exports and spending by state and local governments, as well as a drop in federal spending. “However, this slowdown was partially offset by an acceleration in fixed residential investments, while imports showed a faster pace of growth”, ponders the institution.
Leonardo Costa, economist at ASA Investments, highlights that, in general, GDP slows down not only due to the effect of inventories, but shows moderation in the pace of expansion in the face of consumption and government spending. “And on the inflation side there is resistance in the deceleration of the cores, the last mile difficult to reach, a worse scenario for inflation in the United States”, he assesses.
Economist André Galhardo, economic consultant at Remessa Online, states that even though growth has been lower than expected, the North American economy is still showing resilience at the beginning of the year. “The very heated job market reinforces growth via consumption spending. However, this economic vitality should be the main reason for the Fed to keep interest rates unchanged for a long time.”
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Also released this morning was inflation in the United States, measured by , which rose 3.7% in the first quarter, above the projected 3.4% and 2% in the previous quarter.
The rose 3.4%, compared to 1.8% previously.
To complete the battery of American data, last week’s data in the United States reached 207 thousand, below the projected 214 thousand and the previous revised data of 212 thousand, according to the Department of Labor.
The number of 1.781 million was below the expected 1.814 million, and the previous 1.796 million.
At 9:35 am (Brasília time), the 100 futures fell 1.30%, while the S&P 500 futures lost 0.93% and the futures were down 0.82%. In Brazil, the currency was appreciating 0.22% and the dollar lost 0.02%, to R$5.1447.
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Tags: GDP #1Q24 rises adjusted annual rate expectations Investing .com
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