22.9 C
Seoul
Wednesday, August 10, 2022
Home Economy US economy slipped 1.6% to start year; return to growth expected

US economy slipped 1.6% to start year; return to growth expected

0
28

WASHINGTON (AP) β€” The U.S. economy shrank at a 1.6% annual pace in the first three months of the year, the government reported Wednesday in a slight downgrade from its previous estimate for January-March quarter.

It was the first drop in gross domestic product β€” the broadest measure of economic output β€” since the second quarter of 2020, in the depths of the COVID-19 recession, and followed a strong 6.9% expansion in the final three months of 2021. Inflation is running at 40-year highs, and consumer confidence is sinking.

Last month, the Commerce Department had pegged first-quarter GDP growth at 1.5%. But on its third and final estimate Wednesday the department said consumer spending β€” which accounts for about two-thirds of economic output β€” was substantially weaker than it had calculated earlier, growing at a 1.8% annual pace instead of the 3.1% it estimated in May.

That was partly offset by a revision to its calculation of business inventories….

Read more…