The U.S. economic growth during the first quarter experienced a lower than anticipated increase, according to recently published revised data. The annual growth rate of real Gross Domestic Product (GDP) was 1.3%, a figure lower than the 3.4% recorded in the last quarter of 2023.
According to the second estimate, the economy expanded by 1.3%. The downward revision from the preliminary estimate of 1.6% to 1.3% is mainly due to a correction in consumer spending.
The Personal Consumption Expenditures (PCE) index was adjusted, decreasing from the initial 3.4% to 3.3%. The core PCE, a key measure of inflation that excludes volatile prices of food and fuel, was revised downward to 3.6% from the previously estimated 3.7%.
The increase in real consumer spending was 2.0% in the first quarter, below the initially estimated 2.5%, reflecting a moderation in domestic demand, possibly influenced by inflation concerns and the restrictive monetary policies implemented by the Federal Reserve.
The nominal GDP, which reflects the total value of goods and services produced at current prices, increased by 4.3% at an annual rate, reaching $28.26 trillion. This figure is a downward revision of $28.6 billion from the previous estimate.
