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.

Share:
More In Business
VF Corp Commits to Achieving Zero Waste by Year-End
The parent company of North Face, Vans and Supreme, VF Corp, released its fourth annual "Made for Change" sustainability and responsibility report. It details the company's ongoing efforts to tackle social and climate related issues. This comes as climate experts continue to warn about the dangers of fast fashion and its impact on global CO2 emissions. Sean Cady, Vice President of Global Sustainability, Responsibility and Trade at VF Corporation, joins Cheddar News to discuss.
Stocks Close Mixed, Near Session Lows After Hot Inflation Data
This week's inflation data showed that consumers are not imagining higher prices at the register - prices jumped 6.2% in October, the biggest inflation surge in 30 years. Both the S&P 500 and Nasdaq felt the impact of that data, but today recovered after a sell-off. Sean O'Hara, President at Pacer ETFs, joins Cheddar News' Closing Bell to discuss today's market close amid this week's hot inflation data, and third-quarter earnings season.
Self-Driving Truck Startup Kodiak Robotics Raises $125 Million
Self-driving truck startup Kodiak Robotics recently announced a $125 million funding round as the trucking industry is facing major challenges, including growing shipping demand and driver shortages. Kodiak says its autonomous technology can help businesses move goods faster, safer, cleaner, and more efficiently. Kodiak Robotics founder and CEO Don Burnette joined Cheddar News' Closing Bell to discuss.
Load More