With consumer spending rising less quickly and federal spending down, growth in gross domestic product came in at 1.6pc for the first quarter short of the 2.2pc economists had forecast. But despite the slower-than-forecasted increase, US economic growth is still holding up better than previously expected. At the end of last year, real GDP growth in the first quarter was expected to be less than 1pc. Consumer spending continues to be the main driver of growth and economists expect that to continue, albeit at a slower pace as the yeargoeson,solongasthe USlabour market holds up. That economic strength could, however, keep the Federal Reserve on pause for a good part of the year.

(Adapted from `US GDP Growth Disappoints,` by Barron`s, published on April 26, 2024)