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| Version 0 | Version 1 |
|---|---|
| US economic growth slows as firms cut investment | US economic growth slows as firms cut investment |
| (32 minutes later) | |
| The US economy slowed in the first three months of the year, as businesses reduced investments in the face of higher borrowing costs. | The US economy slowed in the first three months of the year, as businesses reduced investments in the face of higher borrowing costs. |
| The economy grew 1.1% on an annualised basis, the Commerce Department said. | The economy grew 1.1% on an annualised basis, the Commerce Department said. |
| That was down from a rate of 2.6% in the prior quarter, despite strong consumer spending. | That was down from a rate of 2.6% in the prior quarter, despite strong consumer spending. |
| Analysts are watching nervously to see how the world's largest economy handles a mix of higher interest rates and rising prices. | Analysts are watching nervously to see how the world's largest economy handles a mix of higher interest rates and rising prices. |
| The latest report on gross domestic product - the widest measure of economic activity - showed the economy has now grown for three quarters in a row. | |
| The US economy had contracted in the first half of last year as trade flows adjusted from the pandemic and higher borrowing costs led to a sharp slowdown in home sales. | |
| But a strong job market has kept consumer spending - the main driver of economic activity - resilient, despite rising living costs, helping to defy predictions of a recession. | |
| Spending was up 3.7% on an annual basis in the January-to-March period. | |
| However, many forecasters still expect the US to fall into economic recession sometime this year. | |
| "Overall, the data confirm the message from other indicators that while economic growth is slowing, it isn't yet collapsing," said Andrew Hunter, deputy chief US economist for Capital Economics. | |
| "Nevertheless, with most leading indicators of recession still flashing red and the drag from tighter credit conditions still to feed through, we expect a more marked weakening soon." | |
| Recent weeks have been marked by announcements of job cuts from many big businesses, including consultancy Deloitte, manufacturer 3M and tech giant Meta. | |
| Retail sales have weakened since the start of the year and consumer confidence has taken a hit. | |
| Thursday's report showed the biggest drop in business investment in equipment since the pandemic in 2020, falling 7.3% on an annual basis. | |
| Related Topics | Related Topics |
| US economy | US economy |
| GDP | GDP |
| Economic growth | Economic growth |
| United States | United States |