Advance estimate pegs U.S. GDP growth at 0.7% in Q1
The advance estimate of GDP growth for the first quarter 2017 indicates a slowing U.S. economy, though many caution early estimates may be revised significantly. According to the Bureau of Economic Analysis, real GDP in the United States increased at an annual rate of 0.7 percent, a marked deceleration from the 2.1 percent growth in fourth quarter 2016.
If the advance estimate holds, the first quarter had the weakest GDP growth in three years.
The quarter saw positive contributions from nonresidential fixed investment, residential fixed investment, exports and personal consumption expenditures, but these were offset by negative contributions from private inventory investment, state and local government spending, and federal government spending.
The U.S. economic picture is currently one of mixed reports and moderate growth. While GDP appears to be decelerating and consumer confidence dipped in April, employment remains strong, with an unemployment rate of 4.5 percent.