US economy grew less than expected in the first quarter of the year

The Gross Domestic Product (GDP) of USA It grew 1.3% in the first quarter of this year, three-tenths less than in the preliminary calculation, and has increased at an annualized rate of 4.3%, as reported this Thursday by the Department of Commerce.

The first of the two adjustments that the government makes in its GDP calculations shows that economic activity between January and March slowed after the 3.4% increase in the last quarter of 2023.

The data from the BEA Economic Analysis Bureau, which corresponds to the expectation of the consensus among analysts, shows a solid economy with respect to the resentful global economy.

Consumer spending, the main driver of economic growth in the United States, registered an increase of 2% between January and March, after an increase of 3.3% in the previous quarter, according to the same figures published this Thursday.

“Under the second estimate, downward revisions in consumer spending, investment in private inventories, and federal government spending were offset, in part, by upward revisions in state and municipal government spending, investment not fixed residential, fixed residential investment and exports”, noted BEA.

The US economy closed 2023 with an average GDP expansion of 3.1%, dispelling fears of recession after the Covid-19 pandemic and despite the tightening of monetary policy by the Federal Reserve (Fed) to contain inflation.

The Federal Reserve confirmed this Wednesday that the general outlook for the country’s economic activity has become “somewhat more pessimistic”, amid reports of “increasing uncertainty and higher downside risks”.

Interest rates, which set the price of borrowing money, have remained in a range of 5.25% to 5.5% since July 2023, their highest level since 2001.

The inflation rate in the United States fell one tenth in April, to 3.4%, after two months of consecutive increases, still far from the 2% target.

Meanwhile, core inflation, a key data that the Fed analyzes in its decision-making, fell two tenths year-on-year, to 3.6%, and in monthly terms it grew three tenths.

Weaker than expected growth with high inflation will complicate the course of US monetary policy, and in an election year economic performance is key for the government of President Joe Biden, who is behind Republican Donald Trump in key states. , according the surveys.