US GDP Growth Slows to 1.6% in Q1 2024

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.”