US economy grew limitedly in the first quarter
The US economy grew at a more limited pace in the first quarter, as spending and inflation fell.
Gross domestic product increased 1.3 percent on an annual basis in the first three months of the year, below the previous estimate of 1.6 percent, according to figures released by the U.S. Bureau of Economic Analysis on Thursday.
On the other hand, personal spending, the economy’s main growth engine, increased by 2.0 percent compared to the previous estimate of 2.5 percent.
According to the median estimate of economists participating in the Bloomberg survey, GDP was expected to grow 1.3 percent and consumer spending to increase 2.2 percent.
On the inflation front, the personal consumption expenditures price index, the Fed’s preferred measure, rose 3.3 percent annually in the first quarter, slightly below initial estimates. The core PCE indicator, excluding food and energy, increased by 3.6 percent compared to 3.7 percent in the previous estimate.