US Economic Update – US GDP Q1 2013

US GDP rose by 2.5% (annualized rate) in the March quarter. Underlying trend is modest growth. Growth in the quarter was largely driven by private consumption and a positive contribution from inventories. Fixed investment was weaker than the previous quarter but continues to grow

By

  • US GDP rose by 2.5% (annualized rate) in the March quarter. Underlying trend is modest growth.
  • Growth in the quarter was largely driven by private consumption and a positive contribution from inventories. Fixed investment was weaker than the previous quarter but continues to grow. Public demand and net exports both detracted from growth.
  • We expect GDP will grow by 2.1% in 2013 (previously 2.4%) and 2.9% in 2014. The downwards revision in 2013 reflects the lower than expected March quarter outcome, and a softer projection for the June quarter.

For further analysis download the full report.