US economy grows less than forecast at 1.6% rate in first quarter

Surge in core PCE inflation

Valeria Martinez
clock • 2 min read

The US economy grew at a slower-than-forecast 1.6% annualised rate in the first quarter of 2024, while the closely-watched measure of inflation surged more than expected.

The gross domestic product estimates published by the Bureau of Economic Analysis (BEA) today (25 April) came in below expectations of a 2.5% growth rate, and followed a revised rate of 3.4% for Q4 2023. Compared to the previous quarter, the deceleration in real GDP in the first three months of 2024 primarily reflected a slowdown in consumer, state and local government spending, exports and a downturn in federal government spending, the BEA said. JPMorgan CEO Jamie Dimon 'cautious' on US soft landing These movements were partly offset by an acceleration in residential fixed investm...

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