The US real gross domestic product (GDP) grew at an annual rate of 1.3% in the first quarter of 2024, according to the second estimate from the Bureau of Economic Analysis, marking a deceleration from 3.4% growth in the fourth quarter of 2023. The initial estimate had indicated a 1.6% increase, but revisions, primarily in consumer spending, led to the lower figure.
Inflation metrics also saw slight adjustments. The price index for gross domestic purchases increased by 3.0% in Q1, revised down by 0.1% from previous estimates. The personal consumption expenditures (PCE) price index rose by 3.3%, with a 0.1% downward revision. Excluding food and energy, the core PCE price index was revised down to 3.6%.
Despite these updates, the new data had little impact on the market's expectations for interest rate adjustments, with the Federal Reserve's first 25 basis point rate cut still anticipated at the November FOMC meeting.
After the GDP update, the US dollar index moved slightly lower, and US Treasury yields fell by 2-3 basis points, trimming some of the recent gains.
