U.S. Economic Growth in First Quarter Worse than Previously Thought

Jerome Powell and Joe Biden (composite image)

The U.S. economy grew less than previously thought in the first quarter of 2024 amid a slowdown in consumer spending, the Bureau of Economic Analysis (BEA) announced Thursday.

Gross domestic product (GDP) was revised down in the first quarter from 1.6 percent to 1.3 percent year-over-year in a sign that the economy is not as strong as initial estimates indicated, according to a release from the BEA. Economists originally expected growth in the first quarter to be around 2.2 percent, more in line with the above trend growth seen in the third and fourth quarters of 2023, which were 4.9 percent and 3.4 percent, respectively.

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Mexico Dethrones China as America’s Main Source of Goods

Car Plant in Mexico

Mexico supplied the United States with a higher volume of goods than China in 2023, according to annual data from the Bureau of Economic Analysis (BEA) published on Wednesday.

The U.S. imported about $427.2 billion worth of goods from China, whereas imports from Mexico reached around $475.6 billion, according to the data. Trade tensions between the U.S. and China persist as America continues to impose sanctions and tariffs while the two countries engage in a race to develop artificial intelligence technology.

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U.S. Economic Growth Exceeds Expectations with Rate Cuts on the Horizon

Blue Collar

The U.S. economy grew at a rate of 3.3% in the fourth quarter of 2023, according to gross domestic product (GDP) statistics released by the Bureau of Economic Analysis (BEA) on Thursday.

In the third quarter of 2023, real GDP rose 4.9%, down from the second estimate of 5.2%, but in line with initial estimates. Economists expected that GDP growth would be around 2% for the fourth quarter of 2023, in line with typical U.S. growth rates.

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The Fed’s Favorite Inflation Measure Just Ticked Back Up

The Federal Reserve’s preferred method of tracking inflation went up in July, following a similar move by the Consumer Price Index (CPI), according to the Bureau of Economic Analysis (BEA).

The Personal Consumption Expenditures (PCE) price index rose 0.2% for the month of July, culminating in a 3.3% rise for the year in the Fed’s preferred measure of inflation, up from 3.0% year-over-year in June, according to BEA data. The CPI, which is another measure of inflation, rose 3.2% in July, up from 3.0% in June year-over-year.

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U.S. Economy Grows Moderately as GDP Ticks Up

The U.S. economy grew at a rate of 2.4% in the second quarter of 2023, according to gross domestic product (GDP) statistics released by the Bureau of Economic Analysis (BEA) on Thursday morning.

Real GDP increased by 2.0% in the first quarter of 2022 after being revised up from an initial estimate of 1.1%, according to the BEA. Economists expected the GDP would be around 2% in the second quarter of 2023, following high inflation and an interest rate increase from the Federal Reserve on Wednesday.

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Inflation Rose More than Expected in August, Federal Data Shows

Inflation rose more than expected in August, leaving Americans facing even higher prices on a range of everyday purchases, according to newly released federal inflation data.

The Bureau of Economic Analysis released the pricing data, which showed the Personal Consumption Expenditure excluding food and energy, a key marker of inflation, rose 0.6%, higher than expected by Dow Jones.

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The Fed’s Preferred Inflation Metric Just Surged in Another Warning Sign for the Economy

The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, continued to surge in June, according to data released Friday by the Bureau of Economic Analysis (BEA).

The PCE index was up 6.8% for the year ending in June, an increase from the 6.3% that it was at in both April and May, the BEA announced. PCE is the Fed’s preferred measure of inflation because it is “just better at capturing the inflation people actually face in their lives,” and the central bank endeavors to keep it at 2%, Federal Reserve chair Jerome Powell said Wednesday.

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GDP Shows Second Consecutive Quarter of Negative Growth

U.S. gross domestic product decreased by 0.9% in the second quarter of 2022, according to new data from Bureau of Economic Analysis, signaling the start of an economic recession in the U.S.

“The decrease in real GDP reflected decreases in private inventory investment, residential fixed investment, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by increases in exports and personal consumption expenditures…” the BEA said Thursday.

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Feds: 46 States Saw GDP Decline in First Quarter of This Year

Forty-six of the 50 U.S. states saw a decline in gross domestic product in the first quarter of 2022, newly released federal data shows.

The Bureau of Economic Analysis reported Thursday that only Massachusetts, Michigan, New Hampshire and Vermont bucked the trend with increases in GDP in the first three months of this year.

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Another Key Inflation Index Hits 40-Year High

Inflation continues to soar throughout the U.S., with the Personal Consumption Expenditures (PCE) price index increasing to the highest level in almost 42 years while consumer spending cools, the Bureau of Economic Analysis (BEA) reported Thursday.

The PCE, one of the Federal Reserves’ key inflation indicators when it aims for a 2% annual inflation rate, surged 5.7% in November on a year-over-year basis, a 0.6% jump from October, the BEA reported. November’s figure is the highest since 1982.

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Holiday Blues: Economic Challenges Threaten Season with Delays, Shortages and Price Hikes

A series of economic struggles that have grown increasingly worse this year will likely have a significant impact on the holiday season, many economic experts predict.

After President Joe Biden gave remarks from the White House this week, one reporter called out, “Will Christmas presents arrive on time, sir?” The president did not respond to that question or the flurry of others as he walked away from the podium.

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U.S. Retail Sales Jump in January in Positive Sign for Economy

The U.S. retail sales were much higher than economists projected in January, ending a multi-month streak of underperformance, according to the Commerce Department.

Retail sales increased 5.3% and totaled $568.2 billion in January, according to the Department of Commerce report released Wednesday. Economists had predicted retail sales to increase by 1.2%, The New York Times reported.

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