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US economic surge in the first quarter speeds down to 2.3%
As the official report uncovered on Friday revealed, in the first quarter the US economy speeded down.
According to the report of the US Department of Commerce, the updated value of the American GDP surge for the first quarter was raised to approximately 2.3%.
This figure turned to be higher than analysts' estimates that assumed GDP surge at about 2%. In the fourth quarter, the American economy managed to edge up 2.9%.
Slowdown in economic surge compared to the fourth quarter in the main was due to a reduction in growth in the first quarter of real consumer spending in America to about 1.1% after growth of 4% in the previous quarter. By the way, this figure also turned out to be lower than the forecast for surge by 1.2%.
The US GDP deflator in the first quarter tacked on by 2% against the previous surge of 2.3% and compared with a jump of 2.2% in the fourth quarter.
Notwithstanding the dive in indicators, the US recorded the best start of the year from 2015. In addition to this the American economy proceeds with the second longest period of surge after the end of World War II.
Analysts are assured that the report on US GDP won’t probably change the plans of Fed officials to gradually lift the interest rate, considering the expected surge in the American economy in the nearer months because of tax cuts implemented by the Trump administration.
According to the forecast from Investing.com, market participants are assured that the next interest rate lift will take place in June and also hope that the next hike will be in September.
Data on US GDP growth in the first quarter is going to be updated on May 30 and June 28.
Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
The United States will publish the Federal Open Market Committee Meeting Minutes on November 24, at 21:00 GMT+2.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.