The rapid rebound was boosted by massive stimulus packages that boosted consumer spending.
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The United States recorded growth of 6.4% in the first quarter on an annualized basis, a rapid rebound stimulated by massive stimulus packages that boosted consumer spending, according to the trade department, which thus confirms its preliminary estimate.
“The increase in GDP in the first quarter reflects the continued economic recovery, the reopening of businesses and the continued government response to the COVID-19 pandemic,” the ministry summed up in a statement.
He recalls that during the period from January to March, millions of households received government checks while exceptional unemployment benefits continued to be paid.
The Commerce Department specifies that it has revised up consumer spending (+ 11.3%) and non-residential fixed investment (+ 10.8%).
But these were offset by downward revisions to exports and private investment in inventories, keeping GDP growth at 6.4%.
The United States favors annualized GDP growth, that is to say compared to the previous quarter while projecting the evolution of the last known quarter over the entire year. This gives an idea of the annual growth if the pace observed during the last three months were maintained.
But other advanced economies, like France, use the quarter-over-quarter comparison.
If we take this method of calculation, the increase in US GDP is 1.6%, a rate unchanged from the preliminary estimate that was released on April 29.
In the first quarter, the pressure on prices increased with an increase of 3.7% (revised up) according to the PCE index.
The acceleration of the rise in prices raises fears of an overheating of the American economy which benefits from injections of trillions of dollars for a year.
But for now, the American Central Bank, the International Monetary Fund and many economists do not fear an inflationary spiral, believing that it is a transitory increase.
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