The moderate first-quarter growth is, however, probably not a true reflection of the economy's health as GDP tends to be sluggish at the start of the year because of a seasonal quirk.
USA economic growth cooled last quarter as consumers pulled back after outsize spending in the prior period, though solid business investment cushioned some of the weakness and employee-compensation costs accelerated amid a tight job market.
The price index for gross domestic purchases increased 2.8 percent in the first quarter, compared with an increase of 2.5 percent in the fourth.
GDP, the value of all goods and services produced within the United States, increased at an annualized rate of 2.3%, down from 2.9% in the fourth quarter. "The big disappointment was the slowdown in consumption growth to only 1.1% annualized, from 4.0% in the final quarter of a year ago". Construction-equipment maker Caterpillar, a bellwether for growth, said this week that its first-quarter adjusted profit per share "will be the high water mark for the year", sending its shares down the most since mid-2016. That was the largest increase since the first quarter of 2007 and followed a 0.5 percent rise in the fourth quarter.
Strong business investment helped offset consumer pullback.
In the appendix of the CBO report, it shows that, before accounting for economic growth, the tax cuts Trump signed into law late a year ago would cut federal revenues by $1.69 trillion from 2018-2027.
A separate Labor Department report Friday showed that a broad measure of employee compensation rose more than expected in the first quarter, adding to signs that the tight job market is supporting a pickup in pay.
The economy grew at an annual pace of 2.3 percent in the first three months of 2018, truly falling short of President Donald Trump's growth targets for the first time since he took office. "After all, 2.3% is still above most estimates of the economy's potential growth rate", he said.
Federal Reserve officials are likely to shrug off tepid first-quarter growth. It also boosted its forecast for 2019 from a meager 1.5% to a respectable 2.4%. Still, the January-March increase came in better than expected, supporting hopes for a solid rebound for the rest of the year.
The slowdown in US consumer spending reflected slower auto sales as well as purchases on clothing, footwear, food and beverages, according to the report. Domestic demand increased at a 1.7 percent rate, the slowest in two years, after rising at a brisk 4.8 percent pace in the final three months of 2017. The cooling in equipment investment partly reflects a fading boost from a recovery in commodity prices. The core PCE price index rose at a 1.9 percent pace in the fourth quarter. The decline in spending on vehicles and parts subtracted 0.42 percentage point from growth.
With consumer spending slowing, inventories increased at a $33.1 billion rate in the first quarter, up from a $15.6 billion pace in the prior period.
Non residential fixed investment, a measure of corporate spending on structures and equipment, grew at 6.1 per cent in the first quarter, down from 6.8 per cent in the previous quarter.
BC-FBN-Patriots-49ers Trade, 1st Ld-Writethru, 15549ers trade T Trent Brown to Patriots for pickEds: APNewsNow. Brown passed a physical Friday at the Patriots facility to ratify the trade, NFL Media reported.
The judge in that case said last week that he needed to hear from Cohen directly before deciding on that request. A person testifying can invoke the Fifth Amendment to protect against self-incrimination.
The co-founder and CEO of Facebook Mark Zuckerberg has apparently agreed to meet with MEPs at the European Parliament next month. Stevens pressed him on whether Facebook read any terms and conditions of developers who put apps on the platform prior to 2014.
Uganda recently backtracked on a deal with Israel to absorb several thousand migrants following days of negotiations in Kampala. The plan had targeted some 42,000 migrants of Eritrean and Sudanese origin now living in Israel.
He said: 'It is a great joy to have another grandchild; the only trouble is I don't know how I am going to keep up with them'. Prince William joined his brother Prince Harry and his fiancée Meghan Markle at Westminster Abbey for an Anzac Day service.
The success of the Switch has been a huge development for Nintendo after the company whiffed on its last console, the Wii U. As for the company's Labo cardboard peripherals, there is no sales information since they were launched only recently.
He added: "The Jewish Leadership Council and the Board of Deputies of British Jews requests were hardly unreasonable". Allegations of Labour anti-Semitism have grown since pro-Palestinian socialist Corbyn was elected leader in 2015.
Running backs have been devalued in the draft in recent years. All four ranked in the top five in passing yards last season. He's one of those guys that my mother could have scouted.
Cowboys QB Dak Prescott says Jason Witten will be missed
On the second day of the 2018 NFL Draft , news broke regarding the expected retirement of Dallas Cowboys' tight end Jason Witten . However, the plot twist in this situation is Witten wants to be in the broadcasting booth with FoxSports this year.
Amazon Prime price hike begins next month
From 11 May, new members will pay $119 Dollars per year for a subscription, up from $99 USD right now. Profit hit $1.6 billion, or $3.27 a share, compared with $724 million, or $1.48 a share, a year ago.
Former President George HW Bush tweets thanks to Houston
The nation's 41st president has been in hospital since Sunday, a day after the funeral for Barbara Bush , his wife of 73 years. Bush has been moved out of the intensive care ward at a Houston hospital, according to a family spokesperson.
Kevin Feige Provides Update On Marvel Movies & TV Crossover
Brolin casts a large shadow as Thanos , and it's a good thing because this movie deserves an epic villainous performance. The movie speeds along from gargantuan moment to gargantuan moment with death hovering above each spectacular sequence.
What comes after commission's report on college basketball?
Bowen has said he wasn't aware of the alleged bribery plot, and that he only found out about it when the federal case emerged. That coaches, athletic directors and college presidents certify annually that their athletic programs comply with NCAA rules.
Anzac Memorial Service today in Weymouth
Despite the chance of a shower in the city, the rain has largely stayed away from dawn services across South Australia . Col Dunn said Anzac Day was not a place, a person or a even a particular war, it was a spirit and a feeling.