U.S. GDP growth slows as spending and inflation both fall

According to data released on Thursday, the revised annualized quarterly rate of real GDP in the first quarter of the United States was 1.3%, lower than the previous initial value of 1.6%, reflecting that consumer spending was lower than expected. Personal spending, the main growth engine of the US economy, grew by 2.0%, compared with the previous initial value of 2.5%. In terms of inflation, the Federal Reserve prefers the revised annualized quarterly rate of the PCE price index in the first quarter of the United States to be 3.3%, slightly lower than the initial expectation (3.4%). Excluding food and energy, the revised annualized quarterly rate of the core PCE price index in the first quarter of the United States was 3.6%, also lower than the previous expectation of 3.7%.