US GDP Rate Expanded to 6.4%

The US Economy has expanded at an annualized 6.4% pace in the first quarter from the former estimate, which was released last month as per the Commerce Department reported on Thursday.

Economists were questioned by the Wall Street Journal, who were expecting a 6.6% rate. While the consumer spending was revised to be higher, this was offset in part by a stronger import growth, as the government said. Moving ahead, economists also predict that GDP will grow at an 8.2% annualized rate in the second quarter of the year.

The price index for GDP has risen to 4.1% in the first quarter, which is the fastest pace since 1990 yet. Consumer spending was revised up to be an 11% profit in the first three months of the year from the early estimate of a 10.7% increase. The adjusted pre-tax commercial profits were flat in the first quarter of the year after a 1.4% decline in the final three months of 2020.

 In spite of disappointing the economic data in April, we still foresee the US economy’s first-quarter bloom turning into a summer benefit. By 2021, the economy is likely to grow around 7.7% to be its strongest performance since 1951, with consumer spending advancing over 9.5%, which will be a record as told by Gregory Daco, the chief US economist at Oxford Economics. Moreover, Jamie Dimon said on Wednesday that he thinks the strength in the US economy can last up to the year 2023.