U.S. Economy Smashes Expectations In First Three Months Of 2019

Washington D.C. – The U.S. economy expanded faster in the first three months of 2019 than most economists predicted.

The U.S. Bureau of Economic Analysis reported on Friday that the economy expanded at a 3.2% annual pace in the first-quarter.

It marks the first time since 2015 that Q1 GDP topped 3% and the most robust expansion during the first three months in four years.

Additionally, U.S. economic growth shattered expectations as economists polled by Dow Jones expected only an 2.5% increase during Q1.

 

Key Economic Factors 

Disposable personal income increased in Q1 jumping 3%, while prices increased by 1.3% when excluding food and energy.

Overall prices climbed by 0.8% in the first quarter. Consumer spending rose by 1.2%.

The trade sector added a little more than 1% to growth in the first quarter. Exports rose 3.7%, while imports dropped by the same amount, leading to a smaller trade deficit.

Many economists predicted the 35-day government shutdown to begin 2019 would hamper the economy more than it did.

Economists also pointed to the recent sweeping GOP tax cuts which many believe had a positive growth effect which was most reflected in the expanding disposable incomes of consumers.

President Trump was also quick to weigh in on Twitter.

If you enjoyed this article, please help us grow by sharing it. Thank you!

SHARE YOUR COMMENTS



Pin It on Pinterest

Share This
Loading...