U.S. economic activity grew at a slower pace than expected in the first quarter of 2023, flashing further signs that the economy is slowing down as recession fears swirl and the Federal Reserve considers more interest rate increases.
The Bureau of Economic Analysis’ (BEA) advance estimate of first quarter U.S. gross domestic product (GDP) showed the economy grew at an annualized pace of 1.1% during the period, slower than consensus forecasts. Economists surveyed by Bloomberg had the U.S. economy growing at an annualized pace of 1.9% during the first three months of 2022.
The print came in significantly cooler than the previous two quarters, which saw annualized growth at 2.9% and 3.2% respectively.
A slowdown in single-family construction was a factor in Thursday’s lower-than-expected U.S GDP.
The BEA attributed the quarterly slowdown to wholesale trade, headlined by machinery, equipment and supplies, and manufacturing. A slowdown in single-family construction also propelled the decline in growth rate, per the BEA.
Meanwhile, growth in consumer spending in goods and services helped keep annualized growth positive for the quarter.
Click here to read the full report from Josh Shafer at Yahoo Finance.
