US economy shrank by 1.5% in Q1 but consumers kept spending


The government's latest estimate of the gross domestic product for the first quarter is a downgrade I'm Ben Thomas with the closer look Consumers and businesses kept spending at a solid pace during the first three months of the year Nevertheless the economy shrank The commerce department estimates it contracted at a 1.5% annual pace from January through March a slight downward revision from its initial estimate It's the first drop in the GDP since the second quarter of 2020 the depths of the COVID-19 recession but it followed a robust 6.9% expansion of the economy in the final three months of last year The contraction was a result in part of a wider trade gap and slower restocking of goods and stores and warehouses after a holiday buildup Analysts say the economy has likely resumed growing in the current quarter Ben Thomas Washington

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