HE gross domestic product USA (GDP) grew by 2.1% This represents an expansion rate slightly lower than the 2.2% rate for the first three months of 2023, as reported by the Commerce Department’s Office of Economic Analysis in its third estimate for the period.
The increase in real GDP reflected increases in nonresidential fixed investment, consumer spending, and state and local government spending; these increases were partially offset by a decline in exports. Imports decreased.
Economy compared to first quarter data slowdown in consumer spending and federal government spendingThere is also a decrease in exports. On the other hand, private investments in stocks recovered, non-residential fixed investments accelerated, imports contracted and a smaller decline was recorded in housing investments.
The third estimate of GDP data, which has more complete data than the second, was thus confirmed with an increase of 2.1%. Also, in both cases, the reading of the personal consumption expenditures price index, the Federal Reserve’s (Fed) chosen statistic to track inflation, was: at 2.5% annually during the period. The underlying variable, which excludes food and energy due to higher volatility, remained at 3.7%.
The preliminary estimate of GDP data for the third quarter of 2023 will be published on October 26, 2023.
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The Fed decided to halt the increase in national interest rates on September 20 and left interest rates within its target range. Between 5.25% and 5.50%It reached its highest level since January 2001.
But at a later press conference, Fed Chairman Jerome Powell warned that a new increase before the end of the year was not ruled out.
“The majority of members [del Comité Federal de Mercado Abierto] they think about it It’s more likely than not that interest rates will rise again at either of the remaining two meetings this year” Powell explained, also downplaying the impact of this potential increase “from a macroeconomic perspective.”
The head of the American Export Institute also suggested: “The total impact of tightening [acometido] Similarly, Powell reminded that the Fed’s decisions at future meetings will continue to be based on “data received, the evolution of forecasts, and risks.”
Source: Informacion
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