Economic Growth in United States
Revised data shows that GDP grew 1.3% in quarter-on-quarter annualized terms in Q1, slightly above the initial estimate. Underlying momentum was stronger than the headline reading, which was weighed on by a drop in private inventories: Household and government consumption gained speed in the quarter, while fixed investment declined at a softer rate. Turning to Q2, available data is positive: The composite PMI rose through May, while core retail sales and payroll gains both beat market expectations in April. In politics, at end-May, President Biden and Republican Speaker of the House Kevin McCarthy reached a deal to raise the debt ceiling. Congressional approval—which is not guaranteed—would avert a damaging default but also cap government spending for the next two years, dampening domestic demand slightly ahead.
United States Economic Growth Chart
United States Economic Growth Data
2017 | 2018 | 2019 | 2020 | 2021 | |
---|---|---|---|---|---|
Economic Growth (Nominal GDP, ann. var. %) | 4.2 | 5.4 | 4.1 | -1.5 | 10.7 |