Current:Home > MarketsU.S. economic growth slows as consumers tighten their belts -Streamline Finance
U.S. economic growth slows as consumers tighten their belts
View
Date:2025-04-16 19:41:32
U.S. economic growth slowed dramatically in first quarter of 2024, with inflation-weary consumers tightening their belts and spending less, the government reported on Thursday.
The figures published by the bureau of Economic Analysis showed gross domestic product rose at a 1.6% annualized clip during the first three months of the year, after increasing 3.4% in the fourth quarter of 2023.
The government's initial estimate fell well short of expectations, with economists surveyed by FactSet predicting GDP grew at a 2.2% rate last quarter.
"Growth momentum is evidently cooling off sharply from the stellar pace from the second half of last year and, while the U.S. exceptionalism story remains intact, we are starting to see cracks appear in the hard data."
Personal spending climbed 2.5%, and a measure of underlying inflation rose 3.7% in its first quarterly increase in a year, the data showed.
The numbers come ahead of the Federal Reserve's policy session next week. With the central bank expected to maintain interest rates at their current two-decade high, the latest data could delay future cuts.
"This was an interesting mix of data signals, and the ultimate result is higher U.S. yields, lower equities and a stronger dollar," Kyle Chapman, FX Markets Analyst at Ballinger Group, stated.
The report illustrating an economic slowdown amid stubborn inflation had stocks dropping sharply Thursday morning, with benchmark indexes down more than 1%.
Kate GibsonKate Gibson is a reporter for CBS MoneyWatch in New York.
veryGood! (585)
Related
- What do we know about the mysterious drones reported flying over New Jersey?
- The cost of staying cool: How extreme heat is costing Americans more than ever
- Jennifer Garner and Ben Affleck’s Daughter Violet Affleck Speaks Out About Health in Rare Speech
- Minnesota trooper accused of driving 135 mph before crash that killed teen
- US appeals court rejects Nasdaq’s diversity rules for company boards
- Watch this wife tap out her Air Force husband with a heartfelt embrace
- Details emerge after body of American climber buried by avalanche 22 years ago is found in Peru ice: A shock
- Audrina Patridge Debuts New Romance With Country Singer Michael Ray
- Selena Gomez's "Weird Uncles" Steve Martin and Martin Short React to Her Engagement
- Presidential battle could play role in control of state capitols in several swing states
Ranking
- From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
- Ex-Red Hot Chili Peppers guitarist sued for wrongful death in alleged fatal collision
- Olivia Munn Marries John Mulaney in Private New York Ceremony
- The cost of staying cool: How extreme heat is costing Americans more than ever
- Small twin
- KTLA news anchor Sam Rubin's cause of death revealed
- It is way too hot. 160 million under alert as heat breaks records and a bridge
- JoJo Siwa Reveals How Her Grandma Played a Part in Her Drinking Alcohol on Stage
Recommendation
Golf's No. 1 Nelly Korda looking to regain her form – and her spot on the Olympic podium
Bahamas search crews say they've found missing Chicago woman's phone in water
Joe Hendry returns to NXT, teams with Trick Williams to get first WWE win
Church's Chicken employee killed after argument with drive-thru customer; no arrest made
The Daily Money: Disney+ wants your dollars
5 boaters found clinging to a cooler in Lake Erie are rescued by a Coast Guard helicopter crew
Pete Rose docuseries coming to HBO this month, will look at lifetime ban and more
How the Kansas City Chiefs Are Honoring Cheerleader Krystal Anderson 4 Months After Her Death