US economy slows to 1.6% in Q1 of ’24 – BEA

The US economy grew at a sluggish 1.6 per cent annual rate in the first quarter of 2024, according to a preliminary estimate released by the Bureau of Economic Analysis (BEA) on Thursday

This marks a significant slowdown from the robust 3.4 per cent growth recorded in the final quarter of 2023.

This preliminary estimate is based on incomplete data and may be revised in the coming weeks. A more comprehensive report will be released on May 30th, 2024, as per the statement.

Despite the slowdown, consumer spending remained a bright spot, with an increase driven by spending on services like healthcare and finance.

However, spending on goods, particularly vehicles and energy products, declined, according to the report.

The report also highlights a rise in housing investment, led by new single-family home construction and real estate transaction fees.

The price index for gross domestic purchases increased by 3.1 per cent, while the Personal Consumption Expenditures (PCE) price index rose 3.4 per cent. Even excluding food and energy, inflation remained elevated at 3.7 per cent.