U.S. economy's weaker-than-expected Q1 growth spurs stagflation fears

美, 물가 안 잡히는데 성장은 둔화 스태그플레이션 우려 고개

The U.S. economy grew just one-point-six percent in the first three months of this year in a sign that high interest rates may be taking a toll on both borrowing and spending.
Our Shin Se-byuck has the details.

The U.S. Department of Commerce released a report on Thursday that showed that the world's biggest economy grew at an annualized rate of 1-point-6 percent for the first quarter of this year.
This marks the lowest rate since a contraction of zero-point-6 percent in quarter 2 of 2022.
This figure is significantly lower than the previous quarter's growth of 3-point-4 percent.
It also falls well below the 2-point-4 percent increase anticipated by market experts polled by The Wall Street Journal.

The Commerce Department attributed the slowdown to reduced personal spending, fewer exports, and decreased government expenditure at both the local and federal levels.
Personal consumption, the largest driver of the U.S. economy, increased by only 2-point-5 percent in the January to March period, down 3-point-3 percent on-quarter.
There was an uptick in spending on services such as healthcare, finance, and insurance, but there was a notable decline in the consumption of goods, including cars, gasoline, and other energy products.

Challenges remain in the U.S., as inflation remains persistently high amid weakening economic growth.
The Personal Consumption Expenditures Price Index, a key inflation variable for the Federal Reserve, rose at a 3-point-4 percent annualized pace for the quarter.
It is the highest increase in the past year and a substantial jump from the 1-point-8 percent seen in the prior quarter.
The core PCE prices, which exclude food and energy, jumped 3-point-7 percent.
This figure,.. a key indicator for the U.S. central bank when setting interest rates,.. far exceeds the Fed's target of 2 percent,.. dampening hopes that the Federal Reserve would begin cutting interest rates in the near term.

Amid fears of stagflation, a scenario of stagnant economic growth paired with high inflation, Wall Street stocks closed lower on Thursday.
The Dow Jones Industrial Average slid by zero-point-9-8 percent, the S&P 500 lost 0-point-4-6 percent.
Meanwhile, the Nasdaq Composite fell 0-point-6-4 percent.

Shin Se-byuck, Arirang News.

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2024-04-26, 09:00 (KST)

Видео U.S. economy's weaker-than-expected Q1 growth spurs stagflation fears канала Arirang News