According to the Bureau of Economic Analysis, the US economy grew more slowly than initially estimated during the first quarter. The second estimate of first quarter US gross domestic product (GDP) showed the economy growing at an annualized pace of 1.3%, down from the first reading in April of 1.6%. This revision aligns with economist estimates and was primarily due to a downward revision to consumer spending, which grew at 2% compared to a prior reading of 2.5%.
This slowdown in growth has been a cause for concern, as compared to the fourth quarter GDP, which was revised up to 3.4%, the first quarter growth was significantly slower. Investors have been closely monitoring economic indicators, with red-hot growth leading to increased inflation being a major concern for the Federal Reserve. Despite this slowdown, forecasters like Goldman Sachs and the Atlanta Fed still expect robust growth in the second quarter.
Michael Gapen, a US economist at Bank of America, is not too worried about the downward revision to first quarter GDP, stating that the economy remains on a stable footing overall. This analysis suggests that while the economy moderated somewhat in the first quarter, there is optimism for growth moving forward.
In other news, Yahoo Finance reporter Josh Schafer covered an event at the Alamo Bowl between Arizona Wildcats and Oklahoma Sooners where a United States flag was displayed on the field during national anthem on December 28th, 2023. For more financial and business news updates visit Yahoo Finance online.
