WASHINGTON (AP) — Coming off a robust end to 2023, the U.S. economy is thought to have extended its surprisingly healthy streak at the start of this year, with consumers still spending freely despite the pressure of high interest rates.
The Commerce Department is expected to report Thursday that the gross domestic product — the economy’s total output of goods and services — grew at a slow but still-decent 2.2% annual pace from January through March, according to a survey of forecasters by the data firm FactSet.
Some economists envision a stronger expansion than that. A forecasting model issued by the Federal Reserve Bank of Atlanta points to a first-quarter annual pace of 2.7%, propelled by a 3.3% increase in consumer spending, the principal driver of economic growth.
Either way, the economy’s growth is widely expected to have decelerated from the vigorous 3.4% annual pace of October through December. The slowdown reflects, in large part, the much higher borrowing rates for home and auto loans, credit cards and many business loans that have resulted from the 11 interest rate hikes the Federal Reserve imposed in its drive to tame inflation.
Hamas releases video showing well
Fujian Jinhua 'not guilty' in Micron case
Foreign automakers buoyed by recovering China mkt
Peter Andre reveals TWO names are 'in the running' for his newborn daughter as legal deadline looms
Car sales expected to grow 3% in 2023
Chinese companies shine at MWC
Chinese commerce minister meets with WTO director
Crystal Palace ensure Premier League safety by beating Newcastle 2
Chinese commerce minister meets with WTO director
Electric cars and digital connectivity dominate at Beijing auto show
Digital cooperation seen as key to world's recovery