USA: GDP contraction of 1.5% in Q1 at an annualized rate | Photo credit: Reuters
WASHINGTON, May 26 (Reuters) – The U.S. economy contracted slightly stronger than initially estimated in the first quarter due to a record trade deficit and a slight slowdown in inventory build, the World Bank shows. second official estimate released on Thursday.
Gross domestic product (GDP) in the world’s largest economy contracted an annualized 1.5% in the January-March period, the Commerce Department said. In the first estimate, the decline was estimated at 1.4% after a sustained increase of 6.9% in the fourth quarter of 2021.
Economists polled by Reuters on average expected a contraction of 1.3% in the first quarter.
The so-called “core PCE” basic price index, which is closely watched by the Federal Reserve, rose by 5.1% on an annual basis after an increase of 5.2% over the previous quarter and an expected consensus of 5 .2%.
On Wall Street, index futures, expected to rise, slightly reduced their gains after the publication of the GDP indicator. (Report Lucia Mutikani; French version Claude Chendjou, edited by Bertrand Boucey)