United States GDP grew 0.4 % in the first quarter of the year

The third estimate published by the Bureau of Economic Analysis of the Department of Commerce on the United States GDP indicates that during the first quarter of the year, it had a growth of 0.4 %.

This reveals that the indicator had a slowdown, taking into account that it is half of the 0.8 % growth of the fourth quarter of 2023. According to the report, the country’s GDP “advanced between January and March 1.4 % compared to 3.4 % in the previous three months. The update of one tenth upwards compared to the second reading is explained by lower imports and greater non-residential fixed investment and public spending than expected.”

The metric was partially offset by lower consumption by the population. While there was an increase in sectors such as consumer spending, residential fixed investment, non-residential fixed investment and spending by state and local administrations.

When comparing this dynamic with the fourth quarter, “the slowdown in real GDP was a consequence of a moderation in consumer spending, exports and spending by state and local administrations, as well as a decline in federal government spending.” CPI data place it at 3.3 % year-on-year in May, one tenth less than in April.

Employment generation versus unemployment rise

Regarding the labor market, 272,000 new jobs were registered in May, while the unemployment rate rose one tenth, reaching 4 %. For its part, “contracting expanded, mainly, in the health, government, leisure and tourism sectors, and professional, scientific and technical services.” There was a slight variation in other sectors, such as mining, oil and gas extraction; “construction, industry, wholesale trade, transportation and storage, information sector, financial activities, and other services.”

M.Pino

Source: forbes.es

(Reference image source: Unsplash+, in collaboration with Katelyn Perry)

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