The U.S. economy contracted at an annualized pace of 1.4 percent in the first quarter, well below market expectations of 1.1 percent growth.
The gross domestic product (GDP) data, reported on April 28 by the U.S. Commerce Department, mark the first negative growth since the second quarter of 2020 and a dramatic reversal from a 6.9 percent increase in the previous quarter.
The decline in GDP was driven by a drop in private inventory investment, exports, and federal, state, and local government spending. Imports rose in the three months ending in March.
Personal income advanced $268 billion in the first quarter, while disposable personal income climbed to $216.6 billion. The personal savings rate tumbled to 6.6 percent, down from 7.7 percent in the previous quarter.
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