GDP: US economy grew at a slower pace than initially thought in Q1

4 comments

1. Pardon my ignorance, but if our goal is to reduce inflation, wouldn’t it be ideal for GDP to still be growing but at a slower pace?

   If yes, this is welcome news!

2. The US economy grew more slowly than initially thought during the first quarter.

   The Bureau of Economic Analysis’s [second estimate of first quarter US gross domestic product (GDP](https://www.bea.gov/news/2024/gross-domestic-product-first-quarter-2024-advance-estimate)[)](https://www.bea.gov/news/2023/gross-domestic-product-third-quarter-2023-advance-estimate) showed the economy grew at an annualized pace of 1.3% during the period, down from a first reading in April of [1.6% growth and in line with economist estimates.](https://finance.yahoo.com/news/gdp-us-economy-grows-at-16-annual-pace-in-first-quarter-falling-short-of-estimates-while-inflation-increases-123328820.html)

   The update to the first quarter growth metric “primarily reflected a downward revision to consumer spending,” per the BEA. Personal consumption in the first quarter grew at 2%, down from a prior reading of 2.5%.

   The reading came in significantly lower than fourth quarter GDP, which was revised up to 3.4%.

3. This stuff gets revised down all the time and multiple times.

   https://www.reuters.com/markets/us/us-gdp-revised-down-every-first-quarter-2020-2022-2023-09-28/

4. * Q3 2023: 5.2%
   * Q4 2023: 3.3%
   * Q1 2024: 1.3%

   If we remain on this trajectory, we will be in recession by Q3 2024.