The US Economy Slows Down: A Review of the Most Recent Quarter’s Growth Rate and Factors Affecting Personal Spending

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.