29 Apr 2015
US economic growth slowed down to 0.2% in the first quarter
FXStreet (Mumbai) - The preliminary data released by the US Commerce Department today showed, the economic growth in the first quarter slowed down to an annualised rate of 0.2%. The report was expected to show the economy grew at an annualized pace of 1% in the first quarter, down from the 2.2% pace of growth seen in the final quarter of 2014.
There were positive contributions from personal consumption expenditures (PCE) and private inventory investment that were partly offset by negative contributions from nonresidential fixed investment, and state and local government spending. Imports increased 1.8%, while exports fell 7.2%, which dragged the GDP lower.
The core personal consumption expenditure growth slowed to 0.9% quarter-on-quarter from 1.1% in the previous quarter. Meanwhile, the GDP price index fell 0.1%, missing the estimate of 0.4%, and down from the previous quarter’s print of 0.2%.
The Commerce Department said US GDP slowed due to the stronger dollar, severe weather, west coast port dispute and lower energy prices.
There were positive contributions from personal consumption expenditures (PCE) and private inventory investment that were partly offset by negative contributions from nonresidential fixed investment, and state and local government spending. Imports increased 1.8%, while exports fell 7.2%, which dragged the GDP lower.
The core personal consumption expenditure growth slowed to 0.9% quarter-on-quarter from 1.1% in the previous quarter. Meanwhile, the GDP price index fell 0.1%, missing the estimate of 0.4%, and down from the previous quarter’s print of 0.2%.
The Commerce Department said US GDP slowed due to the stronger dollar, severe weather, west coast port dispute and lower energy prices.