U.S. Economy Grew at 1.6% Rate in Q1 2024, Weaker Than Expected
The U.S. economy grew at a 1.6% annual pace in the first quarter of 2024 according to the advance estimate released by the Bureau of Economic Analysis. This U.S. GDP reading came in lower than expected following two strong quarterly reports of 3.4% and 4.9% growth. Consumer spending rose, but less quickly, with growth concentrated in services. Spending decreases were seen on goods such as vehicles and gasoline. Revised estimates will be released May 30, 2024.
The labor market remains robust nationally as new claims for unemployment dropped last week. Locally the economy and labor market remain strong with Michigan’s labor force participation rate increasing to 62.3% in March, continuing to close the gap with the national rate, and regional unemployment holding steady at 3.8%. The city of Detroit’s unemployment rate is at 8%, half that of a decade ago.