U.S. economy still 'very, very strong,' despite likely drop in GDP growth-official

An "Apply Now" sign stands outside a new bar in Boston

WASHINGTON (Reuters) -U.S. data due out Thursday is expected to show slower economic growth in the first quarter, mainly due to a less robust jump in business inventories, but the overall economy remains strong, a senior Biden administration official told Reuters on Wednesday.

The Commerce Department's advance reading of first-quarter gross domestic product, due out at 8:30 a.m. ET (1230 GMT), should not be interpreted as a sign that the economy is headed in a bad direction, the official said.

"Businesses continue to add to their inventory, it's just that they didn't do as fast as they did in the previous quarter," the official said. "If you get under the hood of the GDP number tomorrow I think you're likely to see that economic conditions are still very, very strong."

By Andrea Shalal.

Full story at Yahoo News.