“Hidden” U.S. Economy Growth Reported In First Quarter Of This Year

According to a report, data published by the Commerce Department last Thursday shows that the initial quarter of ’23 was a better period for the U.S. economy than had been previously thought.

According to updated figures provided on Thursday, the first quarter GDP growth rate in the United States was 2%, which is higher than the 1.3% growth rate anticipated by government authorities earlier this year.

After first being published by the BEA at an annualized rate of 1.1 percent, the growth rate for the first quarter of this year has been revised higher. The BEA has issued a larger modification than is typical.

When calculating quarterly growth, the BEA produces three estimates, although adjustments are seldom as large as the 0.7 percentage point increase witnessed.

New data from the BEA shows that increased consumer spending and exports (combined with a decrease in imports) contributed to some economic growth from January to March.

This updated information shows that the U.S. economy remains resilient despite persistent inflation, high-interest rates,  and repeated recession forecasts.

The unemployment rate in the United States has remained at 3.7% this year, higher than it was before the “COVID pandemic” low rates.

U.S. equities rose last Friday as investors bought ahead of the quarter’s conclusion and as traders absorbed a flurry of data releases, including a Core PCE report that was weaker than anticipated due to a drop in the cost of housing and other core services, excluding housing, even as the cost of products rose. 

Price fluctuations for products and services bought by consumers for personal use, excluding food and energy, are tracked by the Core Personal Use Expenditure (PCE) Price Index. All costs associated with producing an item are included in the final price.

The Chicago PMI missed estimates on weak Boeing aircraft orders and the final reading of UoM sentiment, a unit of measure defined as the standard units of measurement used when accounting for stock and expressing it in quantities.