U.S Economy Grew by 6.4% in the First Quarter but Fails to Meet Estimates

U.S Economy Grew by 6.4% in the First Quarter but Fails to Meet Estimates

The US recorded an annual rate of growth of 6.4% in Q1 2021, less than the expected 6.5% according to the Bureau of Economic Analysis press release. First-quarter growth reflected rebounding economy, loosening of restrictions, and heightened response to COVID-19 pandemic.

U.S Economy Grew by 6.4% in the First Quarter but Fails to Meet Estimates

Growth in current-dollar terms rose by $554.2 billion or 10.7% to $22.05 trillion in the first quarter.

The price index relating to gross domestic purchases surged 3.8%, more than 1.7% in Q4.

Personal income in current dollar terms rose by $2.40 trillion or 59.0%, compared to a decline of 6.9% or $351.5 billion in Q4.

Disposable personal income gained 67.0% or $2.36 trillion, compared to a decline of 8.8% or $402.1 billion in Q4.

Real disposable personal income surged 61.3%, up from a fall of 10.1% in Q4.

Personal savings hit $4.12 trillion, up from $2.25 trillion in Q4.

The personal savings rate came at 21.0%, up from 13.0% in Q4.

US stocks and the dollar are currently gaining. SPY is up 0.32%, QQQ is up 0.16%, EURUSD is down 0.08%.

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