Breaking: US economy grows by 6.4% in Q1 vs. 6.1% expected
|The United States' Real Gross Domestic Product (GDP) expanded at an annual rate of 6.4% in the first quarter of 2021, the US Bureau of Economic Analysis first estimate showed on Thursday. This reading followed the 4.3% growth of the fourth quarter and came in slightly better than the market expectation of 6.1%.
Follow our live coverage of the US GDP report and the market reaction.
Market reaction
This report doesn't seem to be having a significant impact on the greenback's performance against its rivals. At the moment, the US Dollar Index virtually unchanged on the day at 90.60.
Additional takeaways
"The increase in first-quarter GDP reflected the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic."
" In the first quarter, government assistance payments, such as direct economic impact payments, expanded unemployment benefits, and Paycheck Protection Program loans, were distributed to households and businesses through the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act."
"The increase in real GDP in the first quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, federal government spending, residential fixed investment, and state and local government spending that were partly offset by decreases in private inventory investment and exports. Imports, which are a subtraction in the calculation of GDP, increased."
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