Why did GDP fall short of forecasts? Almost entirely because of a bigger trade deficit and a weaker buildup in inventories or unsold goods. A wider trade deficit in the first quarter shaved 0.9 percentage points off gross domestic product.
U.S. inflation rose moderately in March, but that is unlikely to change financial markets' expectations that the Federal Reserve will hold off cutting interest rates until September. The personal consumption expenditures (PCE) price index increased 0.
The GDP report also contains quarterly personal consumption expenditure inflation data, which economists can use to get a guide to the March numbers that are due out Friday. According to ING, if the annualized rise in core PCE prices for the first quarter is 3.
The U.S. economy grew at its slowest pace in nearly two years in the first quarter amid a surge in imports and small build-up of unsold goods at businesses, signs of solid demand that together with an acceleration in inflation reinforced expectations the Federal Reserve would not cut interest rates before September.
The U.S. dollar fell on Thursday, except against the yen, vacillating after data showed unexpected slowing in economic growth and an unwelcome inflation acceleration, potentially tying the Federal Reserve's hands on a pivot to easier interest rates.
The US economy cooled markedly in the first three months this year, expanding less than anticipated as consumer spending and exports decelerated, according to government data released on Thursday.
U.S. economic growth in the first quarter fell below the Federal Reserve's estimates of the economy's long-run potential for the first time in nearly two years, but the signs of slowing were accompanied with fast inflation that,
U.S. economic growth slowed more than expected in the first quarter, but an acceleration in inflation suggested that the Federal Reserve would not cut interest rates before September. Growth was largely supported by consumer spending.
The U.S. economy grew at its slowest pace in nearly two years as a jump in imports to meet still-strong consumer spending widened the trade deficit, but an acceleration in inflation reinforced expectations that the Federal Reserve would not cut interest rates before September.
U.S. economic growth slowed more than expected in the first quarter, but a surprisingly hot quarterly Personal Consumption Expenditure inflation component suggested that the Federal Reserve would not cut interest rates before September.
U.S. economic growth likely slowed to a still-solid pace in the first quarter while inflation accelerated, reinforcing financial market expectations that the Federal Reserve would delay cutting interest rates until September.
Traders added to bets that the U.S. Federal Reserve will deliver its first interest rate cut this year in September, after a government report on Friday showed U.S. inflation rose last month in line with expectations.