Despite the steady decline in economic growth over the past year, the US economy experienced a greater than expected slowdown in the first quarter of 2023, according to recent reports. Although it remained solid compared to historical standards, this marks a significant decrease from the previous quarter’s annualized rate of 3.4% and falls below the 2.2% rate projected by economists in a FactSet poll.
The Commerce Department has reported that gross domestic product (GDP), which measures all services and goods produced in the economy, grew at an annualized rate of 1.6% in the first quarter. However, this is far below what was expected and may indicate a negative outlook for future economic growth.
As this story continues to unfold, updates will be provided as more information becomes available. In response to these figures, the Federal Reserve has clarified that they are not in a rush to cut interest rates. This news may have implications for investors and policymakers alike as they navigate through uncertain economic conditions.