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U.S. GDP Growth Was Revised Down to 1.6% as Consumer Spending and Corporate Profits Slowed
Consumer spending was revised down to 1.4%, and economists now expect inflation to run higher and rate cuts to come later.
- The Commerce Department's Bureau of Economic Analysis revised first-quarter GDP growth down to 1.6%, falling short of expectations from Reuters-surveyed economists who anticipated no change.
- Consumer spending, accounting for over two-thirds of the economy, was revised down to 1.4%, with the Bureau of Economic Analysis noting artificial intelligence-related expenditures remain the primary growth driver.
- Business spending increased to 17.2%, while The Conference Board reported consumer confidence dropped; a Gallup poll showed Americans' economic confidence hit a four year low.
- Economists surveyed by Bloomberg expect inflation to reach 3.9% in the second quarter; the Fed will likely delay interest rate cuts as war involving Iran and Israel keeps the Strait of Hormuz closed.
- Only 23 percent of Americans feel their income keeps pace with inflation, with 77 percent reporting they are not keeping up—a sentiment lingering since the Biden presidency's low point in June 2022.
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16 Articles
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(New York = Yonhap News) Correspondent Lee Ji-heon = The U.S. economic growth rate for the first quarter has been revised down from 2.0% to 1.6%.
·Korea (the Republic of)
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Total News Sources16
Leaning Left0Leaning Right5Center3Last UpdatedBias Distribution62% Right
Bias Distribution
- 62% of the sources lean Right
62% Right
C 38%
R 62%
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