The economy expanded at a modest 1.6% annual pace in the first three months of 2024, marking the weakest reading in almost two years. A bigger trade deficit and weaker inventory growth put a lid on the official growth rate in the first quarter.
Yet the details of the GDP report indicate the economy was on solid ground. Consumer spending, the main engine of the growth, rose at a healthy 2.5% clip to lead the way. Business spending was also stronger than expected.
What’s more, there’s little evidence the economy is headed for tougher times. While early data for April have been somewhat soft, very few economists think a recession is likely.
