U.S. GDP grew at an annual rate of 2.0 percent in the first quarter, according to the third and final estimate from the Bureau of Economic Analysis. This is a downward revision from the previous estimate of 2.2 percent for first quarter GDP growth.
According to the BEA, “the general picture of economic growth remains the same,” but personal consumption expenditures and private inventory investment were lower than previously estimated.
Overall, the U.S. economy continues to show moderate growth. Following the Tax Cuts and Jobs Act, passed at the end of 2017, first-quarter corporate profits increased $39.5 billion. In fourth quarter 2017, corporate profits decreased $1.1 billion, according to the BEA.
Both exports and imports (which are a subtraction from GDP calculations) saw a deceleration in the first quarter. International trade continues to be an area of concern, especially as trade war rhetoric escalates. In a research note, S&P Global Ratings states the U.S.-China trade strife is threatening favorable economic conditions: “While global credit conditions remain broadly favorable, an escalating trade battle between the U.S. and its trading partners, notably China, in the form of billions of dollars in retaliatory tariffs are dragging down global investor confidence, spending and economic growth.”