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.
Suri Cruise steps out in stylish sweater and flowing skirt in NYC
Young Laotians held at Myanmar casino fearful of fighting nearby — Radio Free Asia
Eva Mendes, 50, displays her gorgeous complexion in stunning selfies
Havertz scores 2 as Arsenal routs Chelsea 5
Pesce's injury could mean a larger role for DeAngelo in the playoffs for the Hurricanes
Complex stories of migration are among the finalists for the Women's Prize for Fiction
A Greek lawmaker faces criminal charges following a brawl in parliament
80s sitcom queen Delta Burke admits to secret crystal meth battle
Taylor Swift fans go ballistic as Kim Kardashian FAILS to address the not
Arrests follow barricades and encampments as college students nationwide protest Gaza war
Jelly Roll hits the gym amid his plans to lose 250lbs
The EU will probe whether China is unfairly denying companies access to its medical devices market