The U.S. economy, supposed to slow down sharply because of higher interest rates, grew at a solid 2% annual rate in the first quarter. It still appears to be expanding.
The numbers: The U.S. economy was supposed to slow down sharply this year because of higher interest rates, but it grew at a solid 2% annual pace in the first quarter, updated figures show, and the economy still appears to be expanding.
Consumer spending rose 4.2% from a prior 3.8% annual clip, explaining most of the upward increase in GDP. It was the biggest gain in two years. Exports were a bit stronger than previously reported and business investment in large structures such as oil rigs or warehouses was quite strong, up 16%. Big picture: The economy has proven surprisingly resilient even as the Federal Reserve jacks up interest rates to slow down growth and tame inflation. The Fed itself recently raised its GDP forecast for 2023 to 1.1% from 0.4%.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Economy was even better in the first quarter than it seemed: GDP raised to 2%The economy was supposed to slow down sharply this year because of higher interest rates. But U.S. grew at a solid 2% annual rate in the first quarte
Read more »
Federal debt will rise to 107% of GDP by 2029, CBO projectsThe Congressional Budget Office projected Wednesday that public debt will balloon to 107% of the country’s gross domestic product by 2029 and a whopping 181% by 2053.
Read more »
Vietnam Q2 GDP growth accelerates but slowdown loomsVietnam on Thursday reported faster economic growth in the second quarter, driven by the services sector, despite a slump in trade that analysts say could signal a slowdown ahead.
Read more »
U.S. stock futures edge higher ahead of claims data, GDP revisionU.S. stock futures edged higher Thursday, ahead of further data on the strength of the economy that central bank officials said they'd be evaluating for...
Read more »
United States Gross Domestic Product (GDP) Price Index QoQGet the GDP Price Index (QoQ) results in real time as they're announced and see the immediate global market impact.
Read more »