BOOM Economy? U.S. Hits 3.2% Growth Rate in Q1 of 2019 | NTK Network BOOM Economy? U.S. Hits 3.2% Growth Rate in Q1 of 2019

BOOM Economy? U.S. Hits 3.2% Growth Rate in Q1 of 2019

The Friday announcement beat expectations, which were set at 2.5 percent, according to the Wall Street Journal.

By NTK Staff | 04.26.2019 @11:00am
BOOM Economy? U.S. Hits 3.2% Growth Rate in Q1 of 2019

The U.S. economy grew at an annual rate of 3.2 percent in the first three months of the year, according to a report released by the Commerce Department on Friday. That rate beat experts’ expectations of a 2.5-percent growth rate and was spurred by “higher exports and inventory investment.”

The Wall Street Journal explains the report:

The stronger-than-expected growth rate was boosted by and a sharp pickup in the rate of exports, which rose 3.7%, a jump in state and local government spending and higher private inventory investment. Those gains were partially offset by a slower rate of spending by consumers and businesses.

The report showed the U.S. economy defied challenges including a partial U.S. government shutdown, uncertainty over trade policy with China and slowing global growth to produce the strongest rate of growth for the January to March period in four years.

A major factor contributing to the overall 3.2-percent growth was U.S. exports. Net exports contributed to 1.03 percent to the overall growth rate in the first quarter of 2019, its largest boost to the growth rate since the second quarter of 2018.

Quite often, the first quarter of the year is the weakest for economic growth, making Friday’s announcement particularly good news.

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