Exceeding Expectations, , US Economy , Showed Surprising Q1 Growth .
On May 25, the Commerce Department said that
the United States economy saw faster growth in the
first three months of 2023 than previously forecast.
CNN reports that gross domestic
product (GDP) increased at an annualized
rate of 1.3% in the first quarter. .
According to CNN, increased consumer spending
assisted in fueling first quarter growth, accounting
for about two-thirds of U.S. economic output.
Meanwhile, over the same period,
businesses cut back spending
on new equipment.
In April, retail sales saw a rebound followed by two
months of decline, while employers added 253,000
new jobs and average hourly wages grew by 0.5%.
In May, private-sector business activity grew at a rapid
pace, as service-providing businesses reported growing
demand, a hiring boom and increased optimism. .
At the same time, manufacturing in
the U.S. dropped back into contraction
territory amid substantially reduced demand.
The US economic expansion gathered
further momentum in May, but an
increasing dichotomy is evident. , Chris Williamson, Chief business economist at
S&P Global Market Intelligence, via CNN.
While service sector companies are enjoying
a surge in post-pandemic demand, especially
for travel and leisure, manufacturers are
struggling with overfilled warehouses
and a dearth of new orders as spending
is diverted from goods to services, Chris Williamson, Chief business economist at
S&P Global Market Intelligence, via CNN.
While service sector companies are enjoying
a surge in post-pandemic demand, especially
for travel and leisure, manufacturers are
struggling with overfilled warehouses
and a dearth of new orders as spending
is diverted from goods to services, Chris Williamson, Chief business economist at
S&P Global Market Intelligence, via CNN.
CNN reports that strong consumer spending is expected
to continue into the summer, suggesting gains for
leisure and hospitality could prop up employment levels.