The US economy grew 1.3 percent in the first quarter

The US economy grew 1.3 percent in the first quarter of this year, above expectations.

The US Department of Commerce released its second estimates for Gross Domestic Product (GDP) data for the January-March period.

Consequently, US GDP rose 1.3 percent annually in the first quarter of this year.

Although the growth data for that period was revised upwards, the market expectation was that the economy would grow 1.1 percent in the first quarter.

In the pioneering data on the country’s GDP data released in April, it was noted that the economy grew by 1.1 percent in the first quarter of the year.

While the country’s economy grew 2.6 percent in the last quarter of 2022, it showed 2.1 percent growth last year.

INVESTMENTS IN PRIVATE SHARES WERE EFFECTIVE IN THE REVIEW

Growth in the US economy in the first quarter of the year was driven by increases in consumer spending, exports, federal government spending, state and local government spending, and non-residential fixed investment. In the same period, there was a decline in private equity investment and residential fixed investment.

The upward revision of private stock market investments was decisive in the revision of GDP for the first quarter.

In the first quarter of the year, the increase in the price index for personal consumption expenditures was registered at 4.2 percent. The personal consumption expenditures price index, which followed a course in line with expectations, increased 3.7 percent in the last quarter of last year.

The increase in the basic personal consumption expenditures price index, which excludes food and energy expenditures, was revised from 4.9 percent to 5 percent. Market expectations were for the basic personal consumption expenditures price index to rise 4.9 percent in this period. The basic personal consumption expenditures price index had risen 4.4 percent in the last quarter of last year. (AA)