US GDP Growth Slows to 1.6% in Q1 2024
Summary from the AllSides News Team
The U.S. economy grew at a slower pace in the first three months of 2024, according to the Bureau of Economic Analysis’ “advance estimate” released Thursday morning.
The Details: U.S. real (inflation-adjusted) GDP grew at an annual rate of 1.6% in the first quarter of 2024, slower than both Q4 2023’s 3.4% growth rate and economists’ 2.4% prediction. Consumer spending growth also slowed to 2.5% from the previous quarter’s 3.3% growth.
Key Quote: “The increase in consumer spending reflected an increase in services that was partly offset by a decrease in goods,” the BEA report said, adding, “Within goods, the decrease primarily reflected decreases in motor vehicles and parts as well as gasoline and other energy goods.”
For Context: Along with inflation persisting at a slightly elevated 3.5% rate, above the Fed’s 2% target, slowing GDP growth has some investors worried; the Dow Jones Industrial Average fell 600 points Thursday morning.
How the Media Covered It: Coverage sometimes softly echoed partisan attitudes about the economy; with the 2024 elections incoming, perceptions of a weak economy could hurt incumbent President Joe Biden. While most news coverage was generally similar, Fox Business (Lean Right bias) framed the economy as “weaker than expected,” and CNN Business (Lean Left bias) noted that growth “slowed steadily over the past 12 months, which bodes well for lower interest rates.”
Featured Coverage of this Story
From the Left
US economy grew by just 1.6% in the first quarter, a much slower pace than expected
The US economy cooled more than expected in the first quarter of the year, but remained healthy by historical standards. Economic growth has slowed steadily over the past 12 months, which bodes well for lower interest rates, but the Federal Reserve has made it clear it’s in no rush to cut rates.
Gross domestic product, which measures all the services and goods produced in the economy, measured an annualized rate of 1.6% in the first quarter, the Commerce Department reported Thursday. It was the weakest pace of growth since the second quarter of...
From the Right
US economy grew slower than expected at the start of 2024
The U.S. economy grew at a slower pace than expected at the beginning of 2024 as consumers pulled back on spending in the face of higher inflation.
Gross domestic product, the broadest measure of goods and services produced across the economy, grew by 1.6% on an annualized basis in the three-month period from January through March, the Commerce Department said in its first reading of the data on Thursday.
That is much lower than the 2.4% increase forecast by LSEG economists and marks a sharp slowdown from the 3.4% pace seen during...
From the Center
GDP growth slowed to a 1.6% rate in the first quarter, well below expectations
U.S. economic growth was much weaker than expected to start the year, and prices rose at a faster pace, the Commerce Department reported Thursday.
Gross domestic product, a broad measure of goods and services produced in the January-through-March period, increased at a 1.6% annualized pace when adjusted for seasonality and inflation, according to the department’s Bureau of Economic Analysis.
Economists surveyed by Dow Jones had been looking for an increase of 2.4% following a 3.4% gain in the fourth quarter of 2023 and 4.9% in the previous period.
Consumer spending...
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