Monday, December 11, 2023

US GDP grew 0.5% in the second quarter

The economy of the United States grew half a point in the second quarter, as confirmed by the third and final calculation of the Bureau of Labor Statistics (BEA), which also left the calculation of the annual rate at which the Domestic Product increased by 2.1%. Gross (GDP).

These data show a slowdown in growth in the world’s leading economies because the BEA revised the growth in the first quarter, that is 0.6% with an annual rhythm of 2.2% in both cases one-tenth more than what was previously calculated.

Compared to the evolution of the first quarter, the GDP data between April and June shows above all a slowdown in domestic consumption and exports as well as public spending while non-residential private investment increased and residential investment decreased.

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Economic development data is known eight days after Federal Reserve (Fed) decided to make one stop interest rate hikes after the eleven increases it has made since March last year, although it is not clear if there will be more increases before the end of the year.

“The Committee is prepared to adjust the stance of monetary policy as appropriate if there are risks that could interfere with the achievement of its objectives,” said the US central bank, which decided to keep rates unchanged. that range of 5.25% and 5.5% the highest level since 2001.

Although lowering inflation is the primary objective of monetary policy, Fed Chairman Jerome Powell has always explained, and did so last week, that this body will look at all available data, including economic and employment developments, to make decisions.

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“We will continue to make our decisions based on the totality of the incoming information and its implications for outlook for economic activity and inflation. (…) Restoring price stability is essential to lay the foundation for achieving maximum employment and stable prices in the long term,” Powell stressed.

The data released today shows that slight deceleration in this context of high rates.

Another piece of data the Fed is focusing on is the evolution of the labor market, which is also slowing.

And, according to the Bureau of Labor Statistics, on August The unemployment rate in the United States rose by three tenths and stood at 3.8%.

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The net creation of new jobs that month remained at a figure similar to that registered in July, 187,000 positions a figure below the average of the previous twelve months, 271.000 and which confirms the slowdown in the labor market as a result of the increase in interest rates.

Nation World News Desk
Nation World News Desk
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