Commerce Department's GDP report

U.S. Q1 GDP Revised Down to 1.3% Amid Slower Consumer Spending, Lowest in Two Years

May 30, 2024, 12:53 PM

The U.S. economy grew at an annualized rate of 1.3% in the first quarter of 2024, according to revised GDP data from the Commerce Department. This is a downward revision from the initial estimate of 1.6%, reflecting softer-than-expected consumer spending. Personal consumption was revised down from 2.5% to 2%, slightly below the consensus estimate of 2.2%. The GDP Core Price Index was also revised down from 3.7% to 3.6%. Government expenditures, however, grew faster than initially estimated. Despite the revisions, the data aligns with market forecasts and indicates the lowest growth in two years since the previous quarter's 3.4% expansion.