Stagflation Shock: GDP Growth Slows Much More Than Expected While Inflation AcceleratesJohn Carney 25 Apr 2024
The U.S. economy grew at a meager 1.6 percent annual rate in the first three months of the year, the government reported Thursday.
Economists had expected gross domestic product would grow at a 2.5 percent rate. In the fourth quarter of 2023, the economy grew at a 3.4 percent annual pace.
Consumer spending was much weaker than many economists had forecast, with consumers appearing to pull back sharply on spending on goods. Spending on durable goods declined at a 1.2 percent annual pace. Spending on services rose four percent. Overall spending rose at a 2.5 percent rate, below the three percent estimated and the 3.3 percent recorded in the final three months of 2023.
Despite the slowdown in consumer spending, inflation accelerated. The personal consumption expenditure price index rose at a 3.4 percent pace in the first quarter, nearly twice the 1.8 percent increase in the prior three-month period.
Exports were weak, reflecting soft demand from struggling economies around the world, while imports surged. Imports subtract from gross domestic product.
https://www.breitbart.com/economy/2024/04/25/stagflation-shock-first-quarter-economic-growth-far-weaker-than-expected/
