Financial experts have some good news for the US economy. The country started at a very good note the first quarter of the year. The growth rate has been faster than estimated. This is also the best starting growth rate for the economy in 4 years.
According to the Bureau of Economic Analysis, the Gross Domestic Product for the economy has increased by 3.2% in the 1st quarter. This was informed by the agency in its first economy report for the quarter. A poll which was held amongst the economists by Dow Jones, the growth rate was 2.5%. Since the year 2015, this is the first time that the GDP growth rate crossed 3%. The main reasons for this economic success are considered to be the net trade results. This refers to an increase in exports and reduction in imports. The inventories alone with the net trade output were responsible for 170 bps of the increase. This has been informed by Peter Boockvar. He is the chief investment officer at the Bleakley Advisory Group. Another big part of the GDP is the personal expenditure. The economy saw just a rise of 1.2% in this regards. Still it was more than what was estimated. The increase in the service and non durable products expenses balanced the low amount of expenses on durable goods.
Exports have grown by 3.7% and imports have reduced by 3.7% in this first quarter. The high amount of investment in the intellectual property has also boosted the GDP. This sector witnessed a growth rate of 8.6%.
The disposable personal income is increased by 3%. Besides food and energy, the price of other goods has increased by 1.3%. So the overall rise of price has been 0.8% in this quarter. This report was sought after by the investors as they wanted to be sure that recession is not coming soon.