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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.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
The US NFP report will come out on January 8 at 15:30 MT time.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.