US: Real GDP grows by in 6.4% in Q1 as expected

• US economy expanded by 6.4% in the first quarter of 2021.
• US Dollar Index stays relatively quiet around 91.70 after the data.

The United States' Real Gross Domestic Product (GDP) expanded at an annual rate of 6.4% in the first quarter, the US Bureau of Economic Analysis reported on Thursday. This reading matched the previous estimate and the market consensus.

Market reaction

The initial market reaction was largely muted and the US Dollar Index was last seen posting small daily losses at 91.74.

Additional takeaways

"Upward revisions to nonresidential fixed investment, private inventory investment and exports were offset by an upward revision to imports, which are a subtraction in the calculation of GDP."

"The increase in real GDP in the first quarter reflected increases in personal consumption expenditures (PCE), nonresidential fixed investment, federal government spending, residential fixed investment, and state and local government spending that were partly offset by decreases in private inventory investment and exports. Imports increased."