US GDP growth in the first quarter was weaker than forecast

According to preliminary data from the US Department of Commerce, the country's economy grew by 1.1% year-on-year in the first quarter. Analysts on average predicted an increase of 2%. Thus, the pace of GDP growth slowed down after an increase of 2.6% in the fourth quarter.

Analysts note that the American economy is now in a very alarming and risky situation, and all leading indicators point to a significant slowdown in growth.

Consumer spending, which accounts for two-thirds of the economy, increased by 3.7% in the period from January to March (by 1% in the previous quarter). Government spending increased by 4.7% (3.8%).

The PCE Core inflation index (change in consumer prices excluding the cost of food and energy) increased by 4.9% compared to the previous three months. Analysts had expected growth of 4.7%.

Investment in housing construction fell by 4.2%, and the decline was recorded for the eighth consecutive quarter.

The preliminary assessment of the Ministry of Trade is the first of three. Revised data for the first quarter are expected at the end of May, the final estimate will be presented at the end of June.