MNI PREVIEW BRIEF: US Q1 GDP Seen +6.9% on Consumers, Fiscal

U.S. Q1 GDP figures due Thursday at 830am EST will likely show a 6.9% annualized growth rate as government aid, job growth, and widely available vaccines boost consumer spending. That follows an annualized 4.3% in the final quarter of 2020.

Industry sources have also told MNI that the vaccine rollout and fiscal stimulus are leading to a surge of demand and hiring. The Fed on Wednesday added some more optimistic language to its latest statement, citing similar factors.

Still, winter storms in February likely put some downward pressure on GDP growth, as did exports, which continued to struggle due to global demand and supply chain constraints. Some analysts lowered their forecasts Wednesday after the Census Bureau reported a wider-than-expected March trade gap of -USD90.6 billion.