IMPORTANT POINTS:
- GDP jumped 2% in the first quarter of the year, above the expert estimate of 1.3%.
- The figure that was known today removed the possibility of experiencing a recession in the medium term.
- The growth was largely due to the increase in exports, which was 7.8%.
The United States economy grew 2% in the first quarter of 2023, when the expert estimate was 1.3%.
Although the Gross Domestic Product showed a slowdown compared to the last quarter of last year (+2.6), this 2% figure undermines the possibility of the country experiencing a recession in the medium term.
According to the Bureau of Economic Analysis, the jump occurred due to the increase in consumer spending and exports.
In detail, consumer spending rose 4.2%, the highest level since the second quarter of 2021. As for exports, they shot up 7.8%, after a 3.7% drop in the fourth quarter of 2022.
The US economy and inflation
On the other hand, there was a revision in core PCE prices, which exclude food and energy. It was revealed that they rose 4.9%, that is, 0.1% less than previously published.
This is good news for the Federal Reserve, which is still considering raising interest rates at least two more times in the remainder of the year. Its objective is to reach an annual inflation of 2%.
As for the labor market, it was reported that there are currently around 1.7 vacancies for every available worker, and the tightness has resulted in rising wages that have generally not kept pace with inflation.
Finally, today the Labor Department reported that jobless claims fell to 239,000, a drop of 26,000 claims from the previous week. Furthermore, the number was less than the estimate of 264,000.
