Economic Growth Up 3.1% in First Quarter, Beating Estimates | NTK Network Economic Growth Up 3.1% in First Quarter, Beating Estimates

Economic Growth Up 3.1% in First Quarter, Beating Estimates

The U.S. economy grew by 3.1 percent in the first quarter of the year, beating experts’ estimates and temporarily easing recession fears.

By NTK Staff | 05.30.2019 @12:30pm
Economic Growth Up 3.1% in First Quarter, Beating Estimates

A new report indicates that gross domestic product rose by 3.1 percent in the first quarter of 2019. That figure beats the 3.0-percent estimate from Dow Jones.

The strong economic growth at least temporarily allays the fears of those who sense a recession looming after a decade of growth following the 2008 economic downturn.

The increasingly bitter trade dispute with China did not hurt U.S. exports, which rose 4.8 percent in Q1, while imports dropped 2.5 percent.

In the bigger picture, growth easily surpassed what most economists had been expecting at the start of the year. At one point, the Atlanta Federal Reserve was estimating GDP to rise just 0.2%. Strong contributions from real gross domestic income helped drive the better numbers, as did a rise in exports, state and local government spending as well as nonresidential fixed investment.

Personal consumption rose 1.3 percent, perhaps a modest sign that consumer confidence is still relatively high. That figure beats the 0.5 percent increase from the same quarter in 2018.

President Donald Trump has largely built his reelection message thus far on a platform that highlights the strength of the U.S. economy. The unemployment is at a 50-year low, and if the economy continues at this pace, the president will have a strong argument to make to the American people in 2020.

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