US in ‘Worst of Both Worlds’ With High Inflation, GDP Slowdown
- GDP rose 1.1% last quarter, distorted by inventory drawdown
- Consumer spending solid but economists cite flagging momentum
Gross domestic product rose an annualized 1.1% in the first quarter, notably less than the median forecast for 1.9%.
Photographer: Elijah Nouvelage/BloombergThe US economy was slowing even before the brunt of any credit crunch stemming from the recent bank failures, while inflation accelerated, highlighting the enormous challenge faced by the Federal Reserve.
Gross domestic product rose an annualized 1.1% in the first quarter, notably less than the median forecast for 1.9% in Bloomberg’s survey, Bureau of Economic Analysis data showed Thursday.