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.
China calls for strengthened flood control in Yangtze, Taihu Lake basins
Enjoying Life near Beijing Central Axis
Closing prices for crude oil, gold and other commodities
Foreign diplomats impressed by traditional culture, high
Inheriting Craft Helps Woman Promote Hometown's Revitalization
Paris 2024 unveils volunteer uniforms
Contreras has 3 hits as Brewers take advantage of sloppy inning by Pirates in 3
Climate change is bringing malaria to new areas. In Africa, it never left
Heartwarming moment driver saves dog from being run over by bringing traffic to a halt on busy six