Consumers Continue To Carry the Economy

Economic growth in the first quarter of 2024 appears to be on a rosy trajectory.

Multiple reports show that consumers continue to carry the economy by spending freely despite still-elevated inflation and debt levels ticking higher. Growth in the 2% to 2.5% range for the first quarter appears likely, boosted by solid momentum from the second half of last year.

The Bureau of Economic Analysis released two reports last week. The first was the third (and final) estimate of gross domestic product for the fourth quarter of 2023, which was revised higher than its earlier estimate from 3.2% to 3.4% on an annualized basis. The second release was for monthly personal income and consumption expenditures, a large portion of GDP, showing consumption increased by a whopping 0.8% in February and accelerating by 4.9% over the prior year.

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