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U.S. Economy Sees Steady 3.1% Growth Q1; Slowing Signs Emerge Q2
The U.S. economy grew at a 3.1% clip in Q1 2019, according to a report from the Bureau of Economic Analysis (BEA), but there are some economists that believe domestic growth is slowing sharply in the second quarter. Global growth is decelerating and a trade war between the U.S. and China is further working to undermine confidence.
The Commerce Department’s report notes the components of growth shifted. There’s been stronger business investment, though consumer spending is tapping the brakes a bit more than previously estimated.
The increase in real gross domestic product (GDP) in the first quarter reflected positive contributions from exports, PCE, nonresidential fixed investment, private inventory investment, and state and local government spending that were slightly offset by a negative contribution from residential fixed investment. The Commerce Department says that imports decreased in the first quarter after increasing in Q4.
The acceleration in real GDP in Q1 reflected an upturn in state and local government spending, and accelerations in private inventory investment and in exports. These movements were partly offset by a deceleration in PCE.
In the fourth quarter of 2018, real GDP increased 2.2%, bringing the year’s GDP growth to 3.9%, the best annual gain since 2015.
Connect Bay Area is coming up July 18, 2019 at the Grand Hyatt San Francisco. Get more information, and register to attend on this link.
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- ◦Economy
