U.S. economic growth likely continued into 2024. New GDP figures this a.m. expected to show strong but slowing economy.

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ECONOMY

U.S. economic growth likely continued into 2024
New GDP figures this morning are expected to show a strong but slowing economy

By Abha Bhattarai
April 25, 2024 at 6:00 a.m. EDT

The U.S. economy likely extended its recent boom, albeit at a slower clip, in the first three months of the year, fueled by free-spending Americans who have continued to shell out despite inflation.

New gross domestic product data out this morning from the Bureau of Economic Analysis is expected to show the economy grew at an annualized rate of 2.7 percent in the first three months of the year, marking the seventh straight quarter of growth above 2 percent. That would be down from 3.4 percent annualized growth in the previous quarter, reflecting a gradual slowdown after a post-pandemic surge.

Gross domestic product, the sum of all of the goods and services produced in the country, is the broadest measure of the economy.

“Growth is slowing, but clearly the economy is still on a solid path,” said Ben Ayers, senior economist at Nationwide, which recently scrapped its recession forecast for the year. “We’ve had very strong job growth that’s fueling higher incomes, giving people the money to go out and spend. But that’s also kept inflation high, so honestly a little bit of cooling is good news.”

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By Abha Bhattarai
Abha Bhattarai is the economics correspondent for The Washington Post. She previously covered retail for the publication. Twitter https://twitter.com/abhabhattarai

Original title: "Tech Stocks Drag Down US Futures Before GDP Data: Markets Wrap"

Bloomberg
Tech Stocks Drag Down US Futures Before GDP Data: Markets Wrap

John Viljoen and Alice Atkins
Thu, Apr 25, 2024, 6:07 AM EDT • 6 min read

(Bloomberg) -- Technology stocks led declines in US equity futures Thursday after Meta Platforms Inc.’s disappointing outlook underscored the risk of volatility in a high-stakes earnings week.

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Aside from results, traders are keenly awaiting US economic growth figures due later after weeks of scaling back their expectations for Federal Reserve interest-rate cuts. Economists surveyed by Bloomberg predict GDP likely cooled to around 2.5% in the first quarter, with the figures still potentially suggesting persistent inflationary pressures.

“Any downside surprises could see markets bringing expected Fed interest rate cuts earlier — after having been pushed out to much later this year,” economists at Rand Merchant Bank in Johannesburg said. “However, upside surprises could see continued market volatility as the market tries to ascertain the risk that a hotter-than-expected economy poses to anticipated interest-rate cuts.”

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ECONOMY
GDP report Thursday expected to show economy still growing at a solid pace

PUBLISHED WED, APR 24 2024 • 3:11 PM EDT | UPDATED MOMENTS AGO
Jeff Cox
@JEFF.COX.7528 https://twitter.com/JEFF.COX.7528
@JEFFCOXCNBCCOM https://twitter.com/JEFFCOXCNBCCOM

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Bureau of Economic Analysis

From last month:

EMBARGOED UNTIL RELEASE AT 8:30 a.m. EDT, Thursday, March 28, 2024
BEA 24—11
Gross Domestic Product, Fourth Quarter and Year 2023 (Third Estimate), GDP by Industry, and Corporate Profits

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