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U.S. Economy Grew Solid 6.4 Percent In First Quarter
WASHINGTON (AP) — The U.S. economic system grew at a strong 6.4% charge within the first three months of this yr, setting the stage for what economists are forecasting could possibly be the strongest yr for the economic system in progress led by sturdy shopper spending.
The Commerce Division mentioned Thursday that progress within the gross home product, the nation’s whole output of products and providers, was unchanged from two earlier estimates. It got here after progress at a charge of 4.3% within the fourth quarter.
Economists imagine GDP progress will speed up within the present April-June quarter to an annual charge of 10% or higher. For the entire yr, the economic system is predicted to develop by round 7%.
That may be the perfect exhibiting since a 7.2% surge in 1984, a yr the economic system was rising from a deep recession triggered by excessive rates of interest engineered by the Federal Reserve to halt a bout of excessive inflation within the 1970s.
Some analysts assume that progress might surpass the 1984 mark and are available in round 7.7% this yr. That may be the perfect efficiency since 1951.
Thursday’s GDP report was the federal government’s third and ultimate take a look at first-quarter GDP.
Client spending, which accounts for greater than two-thirds of financial exercise, grew at a scorching annual charge of 11.4% in first three months of the yr, up barely from the 11.3% progress estimate made a month in the past.
The spending achieve mirrored will increase in items purchases, led by auto gross sales, and good points in spending on providers, led by meals providers and journey lodging, two areas which have benefited from the re-opening of the economic system as vaccinations have elevated.
Enterprise funding grew at a robust 11.7% charge, higher than the earlier estimate of 10.8% progress, whereas authorities spending elevated at a 5.7% charge, barely beneath final month’s estimate of a 5.8% achieve.
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