The US economy grew more slowly than expected in the first quarter. According to the US Department of Commerce, the US economy grew just 1.1 percent instead of the forecast 2.0 percent.
Unexpectedly, the US economy lost momentum enormously in the first quarter. From January to March, the gross domestic product increased by only 1.1 percent for the whole year, according to the Department of Commerce in Washington. This missed the analysts’ estimates of 2.0 percent. In the last quarter of 2022 there was an increase of 2.6 percent.
US economy growing slower than expected
On the one hand, private consumer spending rose significantly by 3.7 percent and exports by 4.8 percent. On the other hand, investments for companies and the construction industry also weakened under interest rates. The numbers have been expected for a long time. Meanwhile, the figures show the effects of the Fed’s rate hike on the economy in the States. Economists are divided as to whether the US is still threatened with a recession.
