The U.S. economy grew at a lackluster 1.3% annual rate from January through March as businesses wary of an economic slowdown trimmed their inventories, the government said Thursday, a slight upgrade from its initial estimate.
The government had previously estimated that the economy grew at a 1.1% annual rate last quarter.
The Commerce Department's revised measure of growth in the nation's gross domestic product — the economy’s total output of goods and services — marked a deceleration from the second half of 2022.
Despite the first-quarter slowdown, consumer spending, which accounts for around 70% of America's economic output, rose at a healthy pace.
The steady weakening of economic growth is a consequence of the Federal Reserve’s aggressive drive to tame inflation, with 10 interest rate hikes over the past 14 months. Across the economy, the Fed’s rate increase have elevated the costs of auto loans, credit card borrowing and business loans.
With mortgage rates having doubled over the past year, the real estate market has already taken a beating: Investment in housing fell from January through March. In April, sales of existing homes were 23% below their level a year earlier.
Stocks closed higher on Wall Street as earnings reporting season got underway and CEOs began to show how well or poorly they’re navigating high inflation and a slowing economy.
Here is a rundown of Cheddar News' top market stories of the day.
Warner Bros. Discovery said it's raising the monthly fee of HBO Max to $16 from $15.
Cassette sales shot up nearly 30% in 2022, with Guardians of the Galaxy Vol 2. soundtrack as the top sale.
Barbara A. Friedberg, CEO at Wealth Media joined Cheddar News to discuss I-bonds, which are issued by the government, and how yields are adjusted.
Walmart is partnering with Salesforce to sell delivery technology to retailers.
Home Depot is changing its hourly pay policy after several pay-related lawsuits.
Subway could be gearing up for a sale that could value the company at $10 billion, according to reports.
Greg McBride, chief financial analyst at Bankrate.com, joined Cheddar News to discuss inflation trends. “I think with strong confidence that peak inflation is behind us, the trend is definitely one towards continued improvement but we've got a long way to go,” he said.
Nick Bodkins, CEO & founder of beverage collection Boisson, joined Cheddar News to discuss how the industry of non-alcoholic is gaining popularity. “This category is growing but it doesn't have that scale yet.”
