Consumer and government spending trends
Consumer spending presented a mixed picture, with an increase in spending on services, particularly in health care and financial services, being partly offset by a decrease in spending on goods, notably on motor vehicles and products. energy. On the government side, while state and local spending has increased, mainly due to higher employee compensation, federal government spending has slowed, contributing to the overall deceleration of GDP growth.
Investment and trade trends
Investments showed divergent trends, with an acceleration in fixed residential investments, highlighted by growth in brokerage commissions and new single-family housing construction. Conversely, non-residential investments saw a notable increase in intellectual property products. The increase in imports, both of goods and services, further weighed on GDP.
Inflation and income measures
Inflation indicators accelerated, with the gross domestic purchases price index rising to 3.1% compared to 1.9% in the previous quarter. Personal consumption expenditures increased significantly, reflecting rising consumer prices. In addition, personal income saw a considerable increase, leading to an increase in disposable income, although the personal savings rate decreased slightly compared to the previous quarter.
Market Forecast
Given the mixed economic indicators – slower GDP growth, mixed consumer spending and rising inflation – market sentiment could be cautious. Traders should prepare for potential volatility, with a bearish near-term outlook on the U.S. economy until further signs of stabilization or growth are evident. The second GDP estimate, expected at the end of May, will be crucial to confirm trends and adjust forecasts accordingly.
