Breaking Stories

Economic Report: U.S. GDP expanded at unrevised 6.4% rate in first quarter

0

The numbers: The U.S. economy expanded at an annualized 6.4% pace in the first quarter unrevised from the prior estimate released last month, the Commerce Department said Thursday.

Economists polled by the Wall Street Journal were expecting a 6.6% rate.

While consumer spending was revised higher, this was offset in part by stronger import growth, the government said.

Big picture: Looking ahead, economists predict GDP will grow at an 8.2% annualized rate in the second quarter.

JP Morgan Chase & Co CEO
JPM,
-0.01%

Jamie Dimon said Wednesday he thinks that the strength in the U.S. economy can last into 2023.

What happened: The price index for GDP rose 4.1% in the first quarter, the fastest pace since 1990.

Consumer spending was revised up to an 11% gain in the first three months of the year from the initial estimate of a 10.7% increase.

Adjusted pre-tax corporate profits were flat in the first quarter after a 1.4% decline in the final three months of 2020.

What are they saying? “Despite disappointing economic data in April, we still foresee the US economy’s first quarter bloom turning into a summer boom. For 2021, the economy will likely grow around 7.7% – its strongest performance since 1951 – with consumer spending advancing over 9.5% – a record,” said Gregory Daco, chief U.S. economist at Oxford Economics.

Market reaction: Stocks
DJIA,
+0.03%

SPX,
+0.19%

were set to open lower Thursday after eking out small gains on Wednesday. The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.611%

moved above the 1.6% level.

Market Snapshot: U.S. stock futures mostly lower ahead of jobless claims, GDP update

Previous article

Economic Report: Pending home sales sink as the housing market returns back to Earth

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *