Headline Roundup • April 27th, 2023
US GDP Growth Slowed in Q1 2023
Summary from the AllSides News Team
U.S. gross domestic product (GDP) rose at an annual rate of 1.1% in the first quarter of 2023, a slowed pace from the end of 2022 that fell short of expectations.
The Details: A 2% increase was expected, according to a Dow Jones consensus estimate. The personal consumption expenditures (PCE) price index, an inflation measure used by the Federal Reserve, rose 4.2% in Q1 after rising 3.7% in Q4 2022.
Key Quotes: "The increase in real GDP reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in private inventory investment and residential fixed investment," according to the Bureau of Economic Analysis.
For Context: The Q1 2023 growth slowed from the 2.6% and 2.9% GDP increases posted in Q3 and Q4 2022, respectively.
How the Media Covered It: Sources across the spectrum covered the GDP data similarly, especially business and finance-focused outlets. CNBC (Center bias) said GDP pace slowed "as interest rate increases and inflation took hold of an economy largely expected to decelerate even further ahead." CNN Business (Lean Left) said "rising interest rates and high inflation weighed on consumers and businesses." Washington Examiner (Lean Right) said the report "still indicated some resilience to the economy in the face of several major headwinds."
Update 4/27/23 7:12 pm ET: Specified that Q4 2022 GDP growth was 2.9% annualized, not 2.6%.
Featured Coverage of this Story
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Lenny Ignelzi | AP
Economic growth slowed to 1.1% in the first quarter of this year, down from 2.6% the quarter before, the Bureau of Economic Analysis reported Thursday morning.
Economists had expected gross domestic product growth to increase by 2%, so the preliminary report is weaker than forecast. The report still indicated some resilience to the economy in the face of several major headwinds.
The GDP numbers, which are adjusted for inflation, represent the government’s preliminary estimate — the first of three revisions that will be made over the coming months as analysts get a better...
The US economy slowed to an annualized and seasonally adjusted rate of 1.1% in the first quarter of this year, according to GDP data released Thursday by the Department of Commerce.
That falls below economists’ expectations of 2% and marks a much slower pace compared to the previous two quarters, as rising interest rates and high inflation weighed on consumers and businesses.
Growth in the U.S. slowed considerably during the first three months of the year as interest rate increases and inflation took hold of an economy largely expected to decelerate even further ahead.
Gross domestic product, a measure of all goods and services produced for the period, rose at a 1.1% annualized pace in the first quarter, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had been expecting growth of 2%.
The growth rate followed a fourth quarter in which GDP rose 2.6%.
The report also showed that the...
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