U.S. GDP Contracted Less Than Expected in Q1 2015
The U.S. economy contracted less than expected during the first quarter, boosted by strong household spending, inventories, and residential fixed investment.
On Wednesday June 24th, the Bureau of Economic Analysis (BEA) released its third and final estimate of the U.S. gross domestic product (GDP) for the first quarter of 2015. (Source: Bureau of Economic Analysis, June 24, 2015.)
The BEA’s final estimate says that real GDP declined at an annualized rate of 0.2% in the first quarter of 2015. This is better than the second estimate of a 0.7% decline published last month, but worse than the 0.2% growth reported in April.
One thing that turned out better than expected was consumption. Personal consumption increased by 2.1% in the first quarter, though not as impressive as the 4.4% growth in the previous quarter. Among consumption, durable goods gained 1.3%; non-durables increased 0.8%; while services surged 2.7%.
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