US Q1 GDP growth comes in slowed than expected

(Sharecast News) - Economic activity in the U.S. slowed by more than anticipated at the turn of the year, while price pressures picked up. According to the Department of Commerce, in seasonally adjusted terms, gross domestic product grew at a quarterly annualised pace of 1.6%.

That was down from the 3.4% clip observed over the last three months of the previous year.

It was also less than the 2.5% rate forecast by the consensus.

On the prices front, Commerce pegged the rate of increase in the core price deflator for personal consumption expenditures at 3.7%, which was up from 2.0% in the preceding quarter.

Less consumption, but many more imports, together with less inventory building and a slowdown in public sector spending accounted for the decline in GDP growth.

Private domestic investment on the other hand expanded at a 3.2% pace, after a rise of 0.7% in the fourth quarter of 2023.

In response to the inflation data contained in Thursday's report, as of 1503 BST, the yield on the benchmark 10-year U.S. Treasury note was nine basis points higher to 4.733%.

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