The United States is gaining momentum. In the first quarter of 2021, the US economy experienced the second fastest quarterly growth since 2013. The Joe Biden package may heat it up even further. However, the inflation rate, at 4.1%, could be worrying.
- According to preliminary estimates, the US economy grew in the first quarter of 2021 at a rate of 6.4 percent. In an annual approach
- The Bureau of Economic Analysis reading turned out to be slightly lower than economists ’expectations
- A quarter earlier, the GDP of the United States increased by 4.3 percent.
The GDP of the United States in the first quarter of 2021 increased by 6.4 percent. Annual Terms (SAAR) from the CCC – The US Department of Commerce mentioned the first account. The submerged approach means that the US economy would have grown by this percentage if the dynamics of the measurement had not changed over the course of the year.
GDP of the United States in the first quarter of 2021
The market expected a 6.1% increase, so the result is slightly worse than expectations, but it is still the second such high since 2013.
In the fourth quarter, the US economy expanded by 4.3%. kdk SAAR, and in the third quarter increased by 33.4 percent. Private consumption increased by 10.7% in the first quarter compared to + 2.3%. In the previous quarter.
The core PCE deflator was 2.3% in the first quarter (annual qdk), compared to the expected 2.4%. The personal consumption expenditures deflator is the preferred measure of inflation by the US Federal Reserve. However, the GDP price index is looking more serious, reaching 4.1%.
– The GDP price index is very high, It is a clear example of inflation – XTB Analysts Comment. This may contribute to the spread of high prices to other countries. A good example is an example The price of timber increased by 300 percent during the yearAlready affecting the hot residential market abroad.
Data from the US economy for the first quarter of 2021.
First-quarter US GDP growth is high, albeit less than Bloomberg’s forecast. However, many of the consensus was lower than the Bloomberg consensus, which rose recently due to good data from the first quarter. What is surprising, however, is consumption, which grew by as much as 10.7 percent in the first quarter. At an annual rate. Of course, these impressive depreciation results are the result of Biden’s checks and the opening up of the economy, which increases employment, they explain.
The pandemic recedes, the authorities relax
The good data from the US economy is mainly due to the outgoing epidemic. According to Bloomberg data The average number of vaccinations per day increased to 2.8 million doses from just 272,000. At the beginning of the first quarter. At the end of March, it’s about 29 percent. Americans received at least one dose and about 16 percent. They were fully vaccinated.
At the same time, the country is emerging from the most dangerous wave of the Coronavirus outbreak. The daily number of COVID-19 cases has dropped from the maximum of nearly 301,000. Infections in early January to about 68,000 infections in late March.
Low disease rates and the introduction of vaccines have allowed governmental and local authorities to gradually relax some restrictions. Retail sales rose in January and March as Americans flocked to shop. This is what the package adopted during Donald Trump’s presidency did. Americans got live cash in early January.
Economists point out that the warmer weather has also helped service companies develop at a faster pace. The following quarters after the adoption of the $ 1.9 trillion Biden Act could cause an even greater euphoria.
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