In the most recent quarter, the US economy experienced its slowest growth in two years. This was due to a decrease in consumer and government spending, despite an increase in inflation. The country’s gross domestic product (GDP) increased at a 1.6% annualized rate in January-March 2024, which was below the expected 2.4% rise. This growth rate marked a clear slowdown from the previous quarter’s 3.4% increase and was the weakest since mid-2022.
The primary driver of US economic growth, personal spending, also saw slower than anticipated growth at a 2.5% pace. These figures underscore a loss of momentum at the beginning of 2024 following a strong year of economic performance. As more information becomes available, it will be interesting to see how the economy bounces back and what factors may have contributed to this slowdown.