US GDP growth drops below expectations to 1.1% in Q1

2% forecast

US GDP growth dipped to just 1.1% in Q1, despite forecasts of 2%, and a Q4 2022 growth rate of 2.6%.

The US Bureau of Economic Analysis reported today (27 April) that growth had primarily come from an increase in consumer spending, rising 3.7% in the first quarter. However, spending slowed as the quarter progressed, and forecasters warn that it could weaken further amid headlines of layoffs, bank failures and warnings of a possible recession. Meanwhile, the gains in GDP were offset by a decrease in inventory investment and a deceleration of non-residential fixed investment, both of which are highly sensitive to interest rates. 'Mild recession is imminent' as UK records no growth...