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.
Just out: Real GDP for First Quarter grew 3.2% at an annual rate. This is far above expectations or projections. Importantly, inflation VERY LOW. MAKE AMERICA GREAT AGAIN!
— Donald J. Trump (@realDonaldTrump) April 26, 2019