Two Key Gauges of US Economic Activity Diverged in First Quarter
- First-quarter GDP rose 1.3% as consumer spending revised up
- Gross domestic income contracted for a second-straight quarter
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The government’s two main measures of US economic activity diverged in the first quarter, with one gauge painting a picture of weakness.
Gross domestic product rose at a revised 1.3% annualized pace in the first quarter, up slightly from the government’s previous estimate. However, a gauge of the income generated and costs incurred from producing goods and services — gross domestic income — decreased 2.3% after falling 3.3%, the worst back-to-back declines since the start of the pandemic.