U.S. Economic Growth in First Quarter Was Milder Than Initial Reading

Economic growth in the United States slowed more than expected in the first quarter of this year. The latest data from the Commerce Department shows that the country’s gross domestic product (GDP), adjusted for inflation, grew at an annual rate of 1.3 percent. This is a significant drop from the 3.4 percent growth seen in the previous quarter and below the initial estimate of 1.6 percent. The slowdown in growth was attributed to consumers reducing their spending due to rising prices and high interest rates. Despite the slowdown, the economy remains stable, thanks to resilient consumer spending supported by rising incomes and a strong job market. However, inflation remains a concern, with consumer prices still above the Federal Reserve’s target. Policymakers have responded to this by raising interest rates and indicating that they will maintain this stance until inflation is under control.