Consumers curb US economic growth in first quarter, inflation cools

Sustainable Development Goals (SDGs) Report: U.S. Economy Growth Slowdown

By Lindsay Dunsmuir

Introduction

The U.S. economy grew more slowly in the first quarter than previously estimated after downward revisions to consumer spending and a key measure of inflation ticked down, keeping the Federal Reserve on track to possibly begin cutting interest rates at least once before the end of the year.

Gross Domestic Product (GDP)

1. GDP grew at an 1.3% annualized rate from January through March, down from the advance estimate of 1.6% and notably slower than the 3.4% pace in the final three months of 2023.
2. The first-quarter growth downgrade suggests the U.S. central bank’s aim of gradually cooling the economy through high interest rates is having an impact as consumers increasingly balk at higher prices.

Impact on Sustainable Development Goals (SDGs)

• The downward revision to economic growth and inflation make the Fed more likely to start reducing interest rates by September, impacting SDG 8: Decent Work and Economic Growth.
• Consumers feeling less flush due to economic slowdown affects SDG 1: No Poverty and SDG 10: Reduced Inequalities.

Consumer Spending and Inflation

1. Consumer spending growth revised down to a 2.0% annualized rate, reflecting a drop in household spending on goods.
2. A measure of inflation during the first quarter was also revised down to 3.3% from 3.4%, impacting SDG 12: Responsible Consumption and Production.

Labor Market and Trade

• Jobless claims rose slightly, but the labor market remains tight, supporting SDG 8: Decent Work and Economic Growth.
• The goods deficit widened in April, affecting trade balance and SDG 9: Industry, Innovation, and Infrastructure.

Conclusion

The soft start to the year is not expected to persist into the current second quarter, thanks in part to continued strength in the job market, impacting various SDGs related to economic growth, poverty reduction, and sustainable consumption.

## Sustainable Development Goals (SDGs) Addressed in the Article

### SDG 8: Decent Work and Economic Growth
### SDG 12: Responsible Consumption and Production

## Targets Identified Based on the Article’s Content

### Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% per annum GDP growth in the least developed countries.
### Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.

## Indicators Mentioned or Implied in the Article

### Indicator: Gross domestic product (GDP) growth rate
### Indicator: Consumer spending growth rate
### Indicator: Inflation rate
### Indicator: Corporate profits

## Table of SDGs, Targets, and Indicators

| SDGs | Targets | Indicators |
|——|———|————|
| SDG 8 | Target 8.1: Sustain per capita economic growth | Indicator: Gross domestic product (GDP) growth rate |
| | | Indicator: Consumer spending growth rate |
| | | Indicator: Corporate profits |
| SDG 12 | Target 12.2: Achieve sustainable management of resources | Indicator: Inflation rate |

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Fuente: finance.yahoo.com

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