The Bureau of Economic Analysis (BEA)’s preliminary estimate indicates that the US’ real gross domestic product (GDP) grew at an annual rate of 1.1% in the first quarter of 2023. In comparison to the fourth quarter of 2022, this is a decrease of 2.6%.The rise in consumer spending, exports, federal and state government spending, and non-residential fixed investment fixed an investment was the main drivers of the real GDP growth.
The declines in a private inventory investment and residential fixed an investment, however, somewhat offset these improvements. Additionally, imports increased, which is deducted from GDP.The rise in products, especially consumer goods other than food and automobiles, contributed to an increase in summer expenditure in the US. No defense spending, meanwhile, accounted for the majority of the rise in federal government spending.
According to BEA, wholesale commerce and manufacturing were responsible for the decline in a private inventory investment, while durable consumer products were mostly to blame for the rise in imports.The slowdown in real GDP in the first quarter of 2023 compared to the fourth quarter of 2022 was principally brought on by a decline in a private inventory investment and a slowdown in non-residential fianancial investment amendment investment
However, a rise in consumer spending, a rebound in exports, and a smaller decline in fan investment in residential real estate offset these movements.
By- Mansi Surywanshi
