US economy slows down in Q1 of 2023

Washington, Apr 27 (EFE).- The United States economy slowed to 1.1 percent in the first three months of the year, down from 2.6 percent in the previous quarter, the Bureau of Economic Analysis (BEA) said on Thursday.

According to the bureau, the growth in the first quarter of 2023 reflected increases in consumer spending, exports, federal government spending, state, and local government spending, and nonresidential fixed investment.

Compared to the last quarter of the previous year, the deceleration in real GDP in the first quarter primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment.

“These movements were partly offset by an acceleration in consumer spending, an upturn in exports, and a smaller decrease in residential fixed investment. Imports turned up,” said the bureau.

Hikes in goods and services spurred consumer spending.

Within goods, the leading contributor was motor vehicles and parts.

In services, health care, food services, and accommodations led to the increase.

An increase in nondefense spending drove the federal government spending.

The US economy has moderated its growth for two consecutive quarters after coming out of recession in the third quarter of 2022.

The US closed last year with a growth of 2.1 percent.

Last month, the unemployment rate fell one-tenth and stood at 3.5 percent, while inflation continued to fall – for the ninth consecutive month – to 5%.

The GDP data comes after the Republican-majority House Wednesday approved a bill to raise the debt ceiling in exchange for broad cuts in public spending.

But the initiative has few signs of sailing through the Senate, where the Democrats hold the majority. EFE

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