The Bureau of Economic Analysis (BEA) reported that the United States economy grew 1.1%, less than expected in the first quarter of 2023, since in the last 3 months of 2022 its Gross Domestic Product (GDP) registered 2.6%. .
Analysts were forecasting growth to be 2%, and although it was less than expected, there are still signs of strength in the economy.
“Real GDP growth reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment, which were partly offset by declines in private investment in inventories and residential fixed investment. Imports, which are a subtraction in the GDP calculation, increased,” the BEA said.
According to the report, the increase in consumer spending reflected increases in both goods and services: “Within goods, the main contributor was motor vehicles and their spare parts. Within services, the increase was led by health services and food and accommodation”.
Within exports, the increase in goods (led by consumer goods, except food and automobiles) was partly offset by a decline in services (led by transportation). Within federal government spending, the increase was led by non-defense spending.
Compared to the fourth quarter of 2022, the slowdown in real GDP in the first quarter mainly reflected a fall in private investment in inventories and a slowdown in non-residential fixed investment: “These movements were partially offset by an acceleration in spending consumption, a rebound in exports and a smaller decrease in residential fixed investment”, the report states.
According to the BEA, GDP in current dollars increased 5.1% at an annual rate, or $327.9 billion, in the first quarter, to a level of $26.47 trillion. In the fourth quarter, GDP increased 6.6%, or $414.1 billion.
In terms of personal income in current dollars, it increased $278.9 billion in the first quarter, compared to an increase of $398.8 billion in the fourth quarter. The increase in the first quarter primarily reflected increases in compensation (led by private wages and salaries) and government social benefits.
Disposable personal income increased $571.2 billion, or 12.5%, in the first quarter, compared with an increase of $403 billion, or 8.9%, in the fourth quarter. The increase in the first quarter reflected an increase in personal income and a decrease in current personal taxes.
Regarding personal savings, it was reported that it was $946.2 billion in the first quarter, compared to $758.8 billion in the fourth quarter. The personal savings rate was 4.8% in the first quarter, compared to 4% in the fourth quarter of 2022.
After the data released, the United States economy shows a cooling after the last rise in interest rates by the Federal Reserve of 0.25 points, in its attempt to moderate inflation.
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