U.S. economic activity unexpectedly contracted for the first time since the second quarter of 2020 in the first three months of 2022, with lingering supply chain constraints, inflation, and disruptions amid Russia’s war in Ukraine weighing on growth.
The Bureau of Economic Analysis (BEA) released its initial estimate of first-quarter U.S. gross domestic product (GDP) Thursday and here are the main metrics from the report, compared to consensus data compiled by Bloomberg:
- GDP annualized, quarter-over-quarter: -1.4 percent vs. 1.0 percent expected; 6.9 percent in Q4
- Personal Consumption: 2.7 percent vs. 3.5 percent expected; 2.5 percent in Q4
- Core Personal Consumption Expenditures, quarter-over-quarter: 5.2 percent vs. 5.5 percent expected; 5.0 percent in Q4
The GDP report serves, as usual, as a backwards-looking overview of economic activity, capturing the January-through-March period. However, the metric is still an important indicator of the state of the U.S. economy at the start of this year – especially as some pundits now brace for the possibility of a recession in the near to medium term. A recession is typically considered two consecutive quarters of negative GDP growth.
Click here to see the full report from Emily McCormich at Yahoo Finance.
