US GDP: Smaller fall than expected, economic growth forecast for 2015

US GDP fell at an annual rate of 0.2% in the first three months of 2015, the US Bureau of Economic Analysis reported on 24 June.

Economists forecasta decline at an approximate rate of 0.7%, but personal consumption expenditures (PCE) were higher than expected.

Maritza Cabezas, senior economist at ABN AMRO, said that she expects the PCE to be an important driver behind GDP pick-up in coming quarters as well.

She told IBTimes UK: "What we are seeing is, actually, that the 0.2% decline is consistent with a pattern that we have been seeing in previous years in which the first quarter is somewhat weak and then you see a stronger pick up in the later quarters."

"That is also what we are forecasting, actually, our forecast is 2.7% for 2015, that is a bit higher than the consensus, so that shows that we are more optimistic in the coming quarters," she added.

The Bureau of Economic Analysis also reported that the decrease in export was less severe than expected.

Cabezas expects that the continuing increase of consumption spending and the stronger labour market will fuel economic growth.

She said: "The labour market has been showing some strength and with a strong labour market you will probably not only see more employment but you will also see higher wages, which are slowly picking up, which could boost consumption in the near future."

Although the fall was smaller than expected, initially economists expected a 0.7% rise, according to the BBC.