The US Started 2023 with Slower than Expected Growth

According to the advance estimate released today by the U.S. Bureau of Economic Analysis, real GDP increased at an annualized rate of just 1.1% in the first quarter of 2023.

Real GDP growth turned out to be rather slow in early 2023, but the strength of domestic demand shows a degree of resilience that could continue to fuel inflationary pressure. As a result, the Federal Reserve may hike its key interest rate again at next week’s meeting.