The data also revealed that personal consumption expenditures increased by only 0.6% in the first quarter, which is the slowest growth rate in over a year. This can be attributed to rising inflation, which is affecting consumers’ purchasing power.
Meanwhile, business investment declined by 2.3% in the first quarter, which is a significant drop from the 1.7% growth recorded in the previous quarter. This decline in business investment can be attributed to uncertainty caused by the ongoing trade tensions with China and other countries.Despite the weak first-quarter growth rate, economists remain optimistic that the economy will pick up in the coming quarters. They attribute the slowdown to temporary factors such as the severe winter weather and supply chain disruptions caused by the COVID-19 pandemic.
However, others warn that the weak first-quarter growth rate could be a sign of a more significant slowdown in the US economy. They point out that the country’s economic growth has been fueled by stimulus spending and low-interest rates, which are not sustainable in the long term.
Overall, the 1.1% growth rate in the first quarter is a warning sign that the US economy may be slowing down. While some economists remain optimistic, others warn that policymakers must take steps to address the underlying issues affecting the economy, such as rising inflation and trade tensions, to ensure long-term growth and stability.
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The US economy grew at a weak 1.1% rate in the first quarter a sign of a slowdown
By tirupatinews
