News Digest:

The American economy grew by 1.4% in the first quarter of 2024, the slowest quarterly growth since the second quarter of 2022, according to official data. This represents a slight upgrade from its previous estimate, but a worrisome number relates to the 1.5% growth in consumer spending as compared to 2% earlier.

According to a news report, the first quarter growth rates present a sharp pullback from the 3.5% GDP growth recorded by the United States in the January-March quarter last year. Data suggests that the slower growth was a result of a surge in imports and a drop in inventories.

Takeaway:

Economists argue that these two parameters vary from quarter to quarter and need not reflect the health of an economy. Higher imports removed 0.82% of the growth while in the case of lower inventories, it was 0.42%. Analysts are hoping that this slowdown will prompt the Fed to cut rates to bolster growth in the second quarter and beyond.

End Notes

Source: https://abcnews.go.com/US/wireStory/us-economic-growth-quarter-revised-slightly-14-annual-111473104