“The U.S. economy grew at a faster pace than expected in the first quarter and posted its best growth to start a year in four years,” Fred Imbert reports for CNBC. “First-quarter gross domestic product expanded by 3.2%, the Bureau of Economic Analysis said Friday in its initial read of the economy for that period. Economists polled by Dow Jones expected growth of 2.5%.”
“Exports rose 3.7% in the first quarter, while imports decreased by 3.7%. Economic growth also got a lift from strong investments in intellectual property products. Those investments expanded by 8.6%,” Imbert reports. “Disposable personal income increased by 3%, while prices increased by 1.3% when excluding food and energy. Overall prices climbed by 0.8% in the first quarter.”
“The report ‘helps offset fears of slowing global growth,’ said Alec Young, managing director of global market research at FTSE Russell. ‘At a time of lingering U.S.-Chinese trade uncertainty and weak economic data everywhere from Germany to Korea to Japan, strong U.S. data acts as an insurance policy against further global economic weakness. And with inflation still subdued, it’s too early to start worrying about Fed rate hikes again,'” Imbert reports.
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MacDailyNews Take: Increased disposable personal income, especially in Q1, is always good news for companies who sell coveted goods and services like Apple Inc.