Deceleration Compared to Previous Quarter
The deceleration from Q4 to Q1 is attributed to slower growth in consumer spending, exports, and state and local government spending, along with a decrease in federal government spending. This was somewhat counterbalanced by a boost in residential fixed investment and accelerated imports.
Current Dollar GDP and Price Indexes
In current dollar terms, GDP rose by 4.3%, or $298.9 billion, to $28.26 trillion in Q1, slightly down from earlier estimates. The price index for gross domestic purchases increased by 3.0%, and the personal consumption expenditures (PCE) price index rose by 3.3%, both seeing minor downward revisions. Excluding food and energy, the PCE price index increased by 3.6%.
Personal Income and Savings
Current-dollar personal income grew by $404.4 billion, driven by…
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