Exceeding Expectations, , US Economy , Showed Surprising Q1 Growth .<br />On May 25, the Commerce Department said that <br />the United States economy saw faster growth in the <br />first three months of 2023 than previously forecast.<br />CNN reports that gross domestic <br />product (GDP) increased at an annualized <br />rate of 1.3% in the first quarter. .<br />According to CNN, increased consumer spending <br />assisted in fueling first quarter growth, accounting <br />for about two-thirds of U.S. economic output.<br />Meanwhile, over the same period, <br />businesses cut back spending<br />on new equipment.<br />In April, retail sales saw a rebound followed by two <br />months of decline, while employers added 253,000 <br />new jobs and average hourly wages grew by 0.5%.<br />In May, private-sector business activity grew at a rapid <br />pace, as service-providing businesses reported growing <br />demand, a hiring boom and increased optimism. .<br />At the same time, manufacturing in <br />the U.S. dropped back into contraction <br />territory amid substantially reduced demand.<br />The US economic expansion gathered <br />further momentum in May, but an <br />increasing dichotomy is evident. , Chris Williamson, Chief business economist at <br />S&P Global Market Intelligence, via CNN.<br />While service sector companies are enjoying <br />a surge in post-pandemic demand, especially <br />for travel and leisure, manufacturers are <br />struggling with overfilled warehouses <br />and a dearth of new orders as spending <br />is diverted from goods to services, Chris Williamson, Chief business economist at <br />S&P Global Market Intelligence, via CNN.<br />While service sector companies are enjoying <br />a surge in post-pandemic demand, especially <br />for travel and leisure, manufacturers are <br />struggling with overfilled warehouses <br />and a dearth of new orders as spending <br />is diverted from goods to services, Chris Williamson, Chief business economist at <br />S&P Global Market Intelligence, via CNN.<br />CNN reports that strong consumer spending is expected <br />to continue into the summer, suggesting gains for <br />leisure and hospitality could prop up employment levels.
