WASHINGTON — Coming off a robust end to 2023, the U.S. economy is idea to haveactually extended its remarkably healthy streak at the start of this year, with customers still costs easily regardlessof the pressure of high interest rates.
The Commerce Department is anticipated to report Thursday that the gross domestic item — the economy’s overall output of items and services — grew at a sluggish however still-decent 2.2% yearly speed from January through March, according to a study of forecasters by the information company FactSet.
Some economicexperts imagine a morepowerful growth than that. A forecasting design provided by the Federal Reserve Bank of Atlanta points to a first-quarter yearly rate of 2.7%, moved by a 3.3% boost in customer costs, the principal motorist of financial development.
Either method, the economy’s development is extensively anticipated to haveactually decreased from the energetic 3.4% yearly rate of October through December. The downturn shows, in big part, the much greater loaning rates for home and car loans, credit cards and numerous organization loans that have resulted from the 11 interest rate walkings the Federal Reserve enforced in its drive to tame inflation.
Even so, the United States has continued to outmatch the rest of the world’s advanced economies. The International Monetary Fund hasactually predicted that the world’s biggest economy will grow 2.7% for all of 2024, up from 2.5% last year and more than double the development the IMF anticipates this year for Germany, France, Italy, Japan, the United Kingdom and Canada.
Americans, who emerged from the pandemic economiccrisis with plenty of cash in reserve, haveactually been costs energetically, a substantial pattern since customers account for approximately 70% of the country’s GDP. From February