Investment and Government Spending Boost GDP, While Inflation Climbs to 4.5 Percent

Photo by Joachim Schnürle

GDP grew at a 2.0 percent annual rate in the first quarter, driven by large increases in investment and government spending. Non-residential investment grew at a 10.4 percent annual rate, adding 1.39 percentage points (p.p.) to growth in the quarter. Government spending was also a major contributor to growth, growing at a 4.4 percent rate and adding 0.73 p.p. to growth. Consumption grew at just a 1.6 percent annual rate, adding 1.08 p.p. to growth.

Consumption...