US economic growth in the first quarter was revised down slightly from an initial estimate of 1.6% to 1.3% on an annualized basis. Consumer spending, a key driver of growth, increased slower than previously estimated as spending on goods declined. Inflation remained elevated above a 3% annual rate, driven partly by higher energy and food costs. Core inflation rose to 3.6%. Services spending growth remained solid at 3.9%, the strongest since mid-2021. The outlook remains uncertain as inflation exceeds the Fed's 2% target, potentially delaying planned rate cuts.
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00:00 It's Benzinga, here's what's on the block.
00:02 U.S. economic growth in the first quarter was revised down slightly from an initial
00:06 estimate of 1.6% to 1.3% on an annualized basis. Consumer spending, a key driver of growth,
00:14 increased at a slower pace than previously estimated as spending on goods declined.
00:19 Inflation remained elevated above a 3% annual rate driven partly by higher energy and food costs.
00:25 Core inflation rose to 3.6%. Services spending growth remained solid at 3.9%,
00:31 the strongest since mid-2021. The outlook remains uncertain as inflation remains above the Fed's 2%
00:38 target, potentially delaying planned rate cuts. For all things money, visit Benzinga.com.