New York: The US economy expanded less than projected in the first three months of 2024 as exports and consumer spending declined, according to the Commerce Department.
The first quarter saw the world’s largest economy rise by 1.6 percent, according to the Commerce Department data, which is slightly lower than the economists’ expectations of 2.4 percent.
The Commerce Department said that the slow down “primarily reflected decelerations in consumer spending, exports, and state and local government spending.” It also noted a “downturn in federal government spending.”
Even though the most recent estimate indicates growth, President Joe Biden may be affected by economic pressures as he runs for reelection in November.
According to economists, the US economy is performing better than the other developed nations. Before the start of the tightening cycle, consumers locked in cheaper mortgage rates, while corporations refinanced debt. In addition, businesses are hoarding labour in wake of their inability to get workers during and post the COVID-19 outbreak.
