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Major Revision Raises GDP Growth Rate to 2%

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the staff of the Ridgewood blog

Washington DC, the U.S. economy grew at a much stronger pace than expected growth in the first quarter, according to a major upward revision in the GDP on Thursday from the Commerce Department.

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Gross domestic product increased at a 2% annualized pace for the January-through-March period, up from the previous estimate of 1.3% and far above the 1.4% Dow Jones consensus forecast. This was the third and final estimate for Q1 GDP.

The upward revision helps undercut widespread expectations that the U.S. is heading toward a recession.

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According to a summary from the department’s Bureau of Economic Analysis, the change came in large part because both consumer expenditures and exports were stronger than previously thought.

There also was some good news on the inflation front. Core personal consumption expenditures prices, excluding food and energy, rose 4.9% in the period, a downward revision of 0.1 percentage point. The all-times price index increased 3.8%, unchanged from the last estimate.

Federal Reserve policymakers most closely watch core PCE as an inflation indicator. Through a series of rate increases, the Fed is trying to get inflation back down to 2% and normalize interest rates.

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2 thoughts on “Major Revision Raises GDP Growth Rate to 2%

  1. Spend money

  2. We’ve been in a Recession.

    We are still in a Recession.

    EVENTUALLY we will come out of the Recession.
    At that point, the Biden administration will take a victory lap about how they AVOIDED a Recession.

    The corrupt, dishonest media is in full compliance. with this false narrative

    The uninformed public (including your neighbors) will believe it.

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