Growth in America is slightly lower than expected in early 2018

The US Commerce Department slightly reduced its estimate of growth in the first quarter of the year but the rate is still good for the winter, according to the second batch of expectations released Wednesday.
US gross domestic product (GDP) is growing at an annual rate of 2.2 percent between January and March, 0.1 percentage points lower than the first estimate. The relatively steady pace of winter months is lower than the fourth quarter of 2017, with US growth at 2.9 percent.
Analysts had expected the estimates to remain at 2.3 percent.
The ministry justified lowering its forecast for weaker consumption than expected, slowing the real estate market, declining exports and investing in stocks.
The growth rate of 2.2 percent at the beginning of the year remains the best winter for two years, but is lagging behind the impact of major tax cuts approved by the Bush administration in December, particularly for companies.
Compared with the end of 2017, as the optimism of the stock exchange and the improvement in activity after the hurricanes boosted US consumption, consumers barely increased their purchases (+ 1%) at the beginning of the year, the worst consumption in nearly five years. Service spending was below initial estimates (+ 1.8% instead of 2.1%).
The real estate market, which lacks housing for sale, is contributing to raising prices, falling by 2% after rising by 12.8% during the previous quarter.
In light of the uncertainties surrounding the future of trade relations, exports increased by 4.2 percent, lower than the preliminary estimates (+ 4.8 percent) and less than the jump in the fourth quarter (+ 7 percent).
Imports, which affect GDP at a faster pace than originally expected, increased by 2.8 percent but were lower than the fourth quarter (+ 14.1 percent).
On the other hand, institutional investments improved significantly (+ 7.2%).
After the quarterly price index, excluding energy and food, drew analysts' attention when it was initially estimated at 2.5 percent, it was set at 2.3 percent, which would soon dispel fears of a return to inflation.
On June 28, the government publishes the third and last estimates of growth in the first quarter.

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