US first quarter growth beat expectations
The US Department of Commerce announced its final estimates for Gross Domestic Product (GDP) data for the January-March period.
Consequently, US GDP rose 2 percent annually in the first quarter of the year.
Although there was an upward revision in the GDP data in said period, the market expectation was that the economy would grow by 1.4 percent in the first quarter.
The economy was noted to have grown 1.1 percent in the first quarter of the year and 1.3 percent at second estimates released in May, in the country’s main GDP data released in April.
INCREASE IN CONSUMPTION AND EXPORTS
In the growth of the US economy in the first quarter; Increases in consumer spending, exports, state and local government spending, federal government spending, and nonresidential fixed investment were effective. In the same period, there were decreases in private investment in inventories and in residential fixed investment. Imports also increased during this period.
In the final data for the first quarter, exports and consumer spending were revised up, while non-residential fixed investment, federal government spending, and imports were revised down.
The increase in the price index for personal consumption expenses for the first quarter of the year fell from 4.2 percent to 4.1. The personal consumption expenditures price index, which is expected to rise 4.2 percent in this period, rose 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, fell from 5 percent to 4.9 percent.
Market expectations were for the Core Personal Consumption Expenditure Price Index to rise 5 percent during this period.
The basic personal consumption expenditures price index had risen 4.4 percent in the last quarter of last year.
GOLD PRICES DECREASED
Despite the interest rate hikes, the strong economic activity in the US alleviates the interest rate hikes by the US Federal Reserve (Fed).
After the growth data in the USA exceeded expectations, the price of gold per ounce decreased from 1910 dollars to 1895 dollars. The price of the gram of gold also saw the gold of 1590 TL.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
