US economic growth for last quarter is revised up to a still-tepid 1.3% annual rate
May 25, 2023, 5:36 AM
WASHINGTON (AP) — The U.S. economy grew at a lackluster 1.3% annual rate from January through March as businesses wary of an economic slowdown trimmed their inventories, the government said Thursday, a slight upgrade from its initial estimate.
The government had previously estimated that the economy grew at a 1.1% annual rate last quarter.
The Commerce Department’s revised measure of growth in the nation’s gross domestic product — the economy’s total output of goods and services — marked a deceleration from the second half of 2022.
Despite the first-quarter slowdown, consumer spending, which accounts for around 70% of America’s economic output, rose at a healthy pace.
The steady weakening of economic growth is a consequence of the Federal Reserve’s aggressive drive to tame inflation, with auto loans, credit card borrowing and business loans.
With sales of existing homes were 23% below their level a year earlier.