The U.S. economy slowed in the first quarter as consumer spending grew at its weakest pace in nearly five years, but the setback is likely temporary against the backdrop of a tightening labor market and large fiscal stimulus.
The economy grew at a 2.9 percent pace in the fourth quarter.
Economists expect growth will accelerate in the second quarter as households start to feel the impact of the Trump administration's $1.5 trillion income tax package on their paychecks.
Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, braked to a 1.1 percent rate in the first quarter.
Consumer spending in the last quarter was undercut by a decline in purchases of motor vehicles, clothing and footwear as well as a slowdown in food and beverages outlays.
According to surveys, the tax cuts did not reflect on many workers' paychecks until late in the first quarter.
Income at the disposal of households increased at a 3.4 percent rate in the first quarter, accelerating from the fourth quarter's 1.1 percent pace.
https://www.cnbc.com/2018/04/27/first-reading-on-q1-2018-gdp.html
The economy grew at a 2.9 percent pace in the fourth quarter.
Economists expect growth will accelerate in the second quarter as households start to feel the impact of the Trump administration's $1.5 trillion income tax package on their paychecks.
Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, braked to a 1.1 percent rate in the first quarter.
Consumer spending in the last quarter was undercut by a decline in purchases of motor vehicles, clothing and footwear as well as a slowdown in food and beverages outlays.
According to surveys, the tax cuts did not reflect on many workers' paychecks until late in the first quarter.
Income at the disposal of households increased at a 3.4 percent rate in the first quarter, accelerating from the fourth quarter's 1.1 percent pace.
https://www.cnbc.com/2018/04/27/first-reading-on-q1-2018-gdp.html
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