PhotoIt's not a particularly encouraging picture.

Growth in real gross domestic product (GDP) rose at an anemic annual rate 0.7% in the first quarter after expanding 2.1% in the final quarter of last year.

According to the Bureau of Economic Analysis (BEA), the deceleration was due to a slowdown in personal consumption expenditures (PCE), or consumer spending, and downturns in private inventory investment and in state and local government spending.

Those were partly offset by a pickup in exports and increases in both nonresidential and residential fixed investment.

It should be kept in mind that this is just the first of three estimates of GDP and that the data are incomplete or subject to further revision.

GDP inflation

The PCE price index rose 2.4% in the first quarter, versus an increase of 2.0%. Excluding food and energy prices, the PCE price index (core) was up 2.0%, after rising 1.3% in the previous quarter.

The complete report is available on the BEA website.



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