U.S. Growth of 3.2% Tops Forecasts on Trade, Inventory Boost
The growth in the EE. UU. 3.2% surpasses forecasts in commerce and increases inventory. In this way, the economic growth of EE. UU It accelerated in the first quarter thanks to a large increase in inventories and trade. As a result, it compensated for slowdowns in consumer and business spending, and President Donald Trump said the report was much stronger than expected.
Notably, the gross domestic product expanded at an annualized rate of 3.2 percent in the period from January to March. Therefore, according to data from the Department of Commerce on Friday that exceeded all forecasts in a Bloomberg survey that asked for a growth of 2.3 percent. That followed an advance of 2.2 percent in the previous three months. Even so, it is possible that the numbers may reinforce hopes that growth will stabilize after its recent soft patch. In fact, according to US President Donald Trump, he said that the GDP figures have been “much higher than the high expectations.”
However, the underlying demand was weaker than the indicated holder number. Consumer spending, the bulk of the economy, rose 1.2 percent, slightly above the forecast, while business investment cooled.
It is important to listen to what the experts have to say about it. That being the case, Bloomberg economists have expressed “While this is encouraging news at face value, particularly because of the growing concerns that shook economic sentiment at the turn of the year, closer inspection exposes an underlying profile much more. slow — Much of what made GDP in the first quarter look good will make the second-quarter GDP look considerably weaker, that is, unresolved pending inventory”
It should be noted that data showing faster growth and moderate inflation helped boost bond yields on Friday. US stocks were modified shortly after reducing previous losses.
Likewise, it is necessary to mention that the first acceleration in GDP since mid-2018 reflected the greatest combined momentum since 2013 for two typically volatile components, inventories, and trade, which could affect the economy later in the year.
Source: Reade Pickert and Jeff Kearns | Bloomberg