The Bureau of Economic Analysis Thursday released 2024’s first quarter gross domestic product (GDP) report, which showed an annual rate increase of 1.6%.
“GDP fell shy of expectations in the first quarter, registering the slowest pace of growth in nearly two years. However, key components like consumption and business fixed investment remained strong, while volatile elements such as inventory growth and net exports accounted for the undershoot,” said America’s Credit Unions Deputy Chief Economist Curt Long. “This suggests that the economy remains on stable footing, and that the Federal Reserve can afford to wait for inflation to slow before cutting interest rates. Credit unions are a net positive for the economy, generating over $200 billion in economic activity annually.”
The increase in real GDP primarily reflected increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending that were partly offset by a decrease in private inventory investment, according to the bureau.
