Final Q1 GDP data shows stronger-than-previous economic expansion, signaling resilience amid monetary tightening.
The US economy grew at a 2.1% annualized rate in the first quarter, according to final government data. The expansion marks a sharp rebound from the 0.5% growth recorded in the previous quarter, reflecting improved consumer spending and business investment.
Economists had anticipated a modest uptick, but the 2.1% print exceeded expectations set by earlier estimates. The January-March period also outpaced the same quarter last year, which saw a 1.6% increase. The data underscores the economy’s ability to withstand elevated interest rates.
Markets reacted cautiously, with equity futures and Treasury yields showing limited movement as investors digested the report’s implications for Federal Reserve policy.