By Staff
Monday, July 1, 2024 1:16 PM
The U.S. real gross domestic product (GDP) slid in the first quarter of 2024, according to a
new report from the Bureau of Economic Analysis (BEA). New data shows the GDP increased by a real annual rate of 1.3 percent in the first quarter of 2024, however, this is a deceleration from the fourth quarter of 2023 when the GDP increased by 3.4 percent.
Experts believe the increase reflects a rise in consumer spending, residential fixed investment, non-residential fixed investment, and state and local government spending, partly offset by a decrease in private inventory investment.
The BEA noted that compared to the fourth quarter, the deceleration in real GDP primarily reflected decelerations in consumer spending, exports, and state and local government spending, and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment, the bureau noted. Imports also accelerated, the BEA said.
Disposable income also rose, climbing to $20 billion, however, this was down from original predictions. Personal savings also fell to $777 billion. Profits for financial corporations increased by $65 billion in the first quarter, however, this was also down from original BEA predictions, according to the report.
The BEA said a downward revision to imports and upward revisions to non-residential fixed investment, state and local government spending, exports, federal government spending, private inventory investment, and residential fixed investment, were partly offset by a downward revision to consumer spending, all of which points to a slowdown in economic recovery into 2024.