Keith Wade, chief economist at Schroders, comments on the latest US GDP figures.
The US economy grew by a mere 0.1% in the first quarter which, as this number is annualised, means virtually nothing. However, a weak figure was not entirely unexpected given the severe cold and snow during the quarter meant that many were unable to work or shop. In terms of the components of GDP the weather weighed on residential investment, sales of motor vehicles and exports. Each of these is expected to rebound in the current quarter and lift real GDP back to a 3% pace.