U.S. Economic Growth Slows. Is There Cause for Concern?

Executive summary:

  • U.S. GDP slowed to a 1.6% clip during the first quarter of 2024
  • The Fed's preferred inflation gauge came in slightly hotter than expected in the first quarter
  • So far, the results from first-quarter earnings season in the U.S. are mixed

On the latest edition of Market Week in Review, Investment Strategist BeiChen Lin and Sophie Antal-Gilbert, Head of AIS Portfolio & Business Consulting, discussed the U.S. first-quarter GDP (gross domestic product) reading. They also reviewed the latest U.S. inflation data and provided an update on U.S. first-quarter earnings season.

Q1 economic growth misses expectations in the U.S.

Antal-Gilbert and Lin opened the discussion with a look at first-quarter GDP in the U.S., which Lin noted came in weaker than expected at an annualized rate of 1.6%. This was lower than both consensus expectations—which called for a 2.2% increase—and the previous quarter’s gain of 3.4%, Lin observed.