Economic Growth Slows Down in the US: Q1 GDP Rate Falls Below Expectations

Gross domestic product grew at an annualized rate of 1.6% in the first quarter, marking a significant decline from the previous year and falling below economists’ predictions. Despite this, the US economy remained solid compared to historical standards. The Federal Reserve has clarified that they are not in a rush to cut interest rates, as the steady decline in economic growth over the past year suggests a positive outlook for lower rates.

The Commerce Department released these figures, which measure all services and goods produced in the economy, adjusted for seasonal fluctuations and inflation. This represents a decrease from the 3.4% rate seen in the fourth quarter and falls below the 2.2% rate projected by economists in a FactSet poll. However, it is important to note that these figures are still subject to revision as more data becomes available.

As this story continues to develop, updates will be provided as new information becomes available.