3 weeks ago
Stock markets plummeted arsenic U.S. first 4th GDP grew a slower-than-expected 1.6%, according to a Thursday BEA report. File Photo by John Angelillo/UPI | License Photo
April 25 (UPI) -- U.S. stocks tumbled connected Thursday arsenic nan Bureau of Economic Analysis reported that nan system was increasing much slow than expected.
About an hr aft trading opened, nan Dow Jones was down 629 points, aliases 1.64%, while nan S&P 500 dropped 1.2% and nan Nasdaq Composite declined slid 1.45% connected nan heels of nan BEA's first-quarter gross home merchandise study which showed that existent GDP grew 3.4% for nan 4th and an annual complaint of 1.6%.
Dow Jones economists had estimated a 2.4% annual summation aft a 3.4% bump successful nan 4th fourth of 2023.
"Compared to nan 4th quarter, nan deceleration successful existent GDP successful nan first 4th chiefly reflected decelerations successful user spending, exports, and authorities and section authorities spending and a downturn successful national authorities spending," nan BEA said successful a statement.
Consumer spending grew 2.5% successful nan first 4th compared pinch 3.3% successful nan fourth.
The BEA study said accrued services spending happened successful wellness attraction arsenic good arsenic financial services and security successful nan first quarter. Goods spending decreases were mostly successful centrifugal vehicles and parts arsenic good arsenic gasoline and different power goods.
The BEA reported that gross home purchases accrued 3.1% successful nan first 4th compared pinch an summation of 1.9% successful nan 2023 4th quarter.
Inflation measured by nan individual depletion scale was up 3.4% successful nan first 4th this twelvemonth while it was 1.8% for nan 4th fourth 2023.
The 4th fourth 2023 GDP of 3.4% came successful stronger than expected while firm profits were up by $5.9 billion.
President Joe Biden said successful a connection that while nan American economy remains strong, pinch continued dependable and unchangeable growth, costs are still excessively precocious for moving families and he said he's moving to little them.
"The system has grown much since I took agency than astatine this constituent successful immoderate statesmanlike word successful nan past 25 years-including 3% maturation complete nan past twelvemonth while unemployment has stayed beneath 4% for much than 2 years," Biden said.
Biden said he's trying to little medicine supplier costs, prohibition firm junk fees and little lodging costs by building a cardinal caller homes.
He accused legislature Republicans of having nary scheme to little surviving costs.
Instead, he said, they are fighting to "give nan able and large corporations much taxation cuts while cutting programs for illustration Social Security, Medicare and nan Affordable Care Act. "
