Reported 12 months ago
On June 27, 2024, the US Department of Commerce released the final values of the first-quarter Gross Domestic Product (GDP), Personal Consumption Expenditures (PCE), and May Durable Goods Orders. The GDP growth rate was higher than the initial estimate but significantly lower than the previous quarter, marking the slowest growth in nearly seven quarters and raising concerns among investors about the economic situation. After the data was announced, US stocks fluctuated at the opening on the 27th, with the Dow rising 0.02%, Nasdaq rising 0.34%, and S&P 500 rising 0.12%. The final value of the US first-quarter GDP growth rate was revised from 1.3% to 1.4%, meeting expectations but lower than the previous quarter's 3.4%, the lowest growth rate since the third quarter of 2022. The Bureau of Economic Analysis (BEA) attributed the GDP increase to higher consumer spending, residential fixed investment, non-residential fixed investment, state and local government spending, offsetting the impact of reduced inventory investment by private businesses. The final PCE price index for the first quarter rose by 3.4%, slightly higher than the initial 3.3%, the largest increase since the second quarter of last year. PCE is an important basis for the Federal Reserve's rate policy, and the May PCE data was announced on the 28th. May Durable Goods Orders increased by 0.1%, beating market expectations of a 0.1% decrease, driven mainly by a 1.3% increase in demand for computers and related products and a 0.6% increase in transportation equipment. The April orders were revised downward from a 0.7% increase to 0.2%. Excluding defense orders for aircraft, unexpected non-defense orders fell by 0.6% in May, the largest monthly decline since December of last year. Although Durable Goods Orders have increased for four consecutive months in May, the growth rate has slowed. Before the Federal Reserve begins to cut interest rates and the financing environment becomes more attractive for business investment, it is believed that there will not be a significant rebound in the manufacturing sector. However, experts anticipate a significant increase in investment in artificial intelligence (AI) and other technologies by businesses to offset the effects of long-term labor shortages and gain a competitive advantage through new technologies.
Source: YAHOO