US GDP Growth Revised Down to 1.3%, Consumer Spending Remains Strong
The U.S. economy's growth rate for the first quarter of 2023 was revised down to 1.3% from an initial estimate of 1.6%, marking the slowest pace since spring 2022. Despite high interest rates and inflation, consumer spending continued, albeit at a reduced rate. The slowdown was largely due to increased imports and reduced business inventories. Inflation pressures persisted, with consumer prices rising at a 3.3% annual pace. The Federal Reserve's high interest rates have yet to trigger a recession, but signs of economic weakening are emerging, including rising credit card delinquencies and slowing hiring. The outlook remains uncertain, with potential delays in rate cuts posing risks to future growth.
- US economic growth last quarter is revised down from 1.6% rate to 1.3%, but consumers kept spending The Associated Press
- Thursday was a sour day for the US economy — with an important silver lining CNN
- GDP Gain in First Quarter Revised Downward in U.S. The New York Times
- Thursday was a sour day for the US economy – with an important silver lining erienewsnow.com
- Treasuries Extend Advance After GDP Price Indexes Revised Lower Bloomberg
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