GDP Growth Slows But Economy Still Looks Strong

The US gross domestic product for the first quarter of 2023 grew at 1.1% (annualized), down from the annualized 2.6% growth seen in the final quarter of 2022.

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At face value, this slowing GDP growth might look like a bad sign for the economy in general, but upon closer inspection, much of the problem and certainly the most direct impact seems to be with the business inventory category, which is subject to fairly wild swings from one quarter to the next that don’t necessarily signal much about the broader economy. The business inventory category alone reduced the overall gdp growth rate by 2.3%.

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You can read more about these latest economic developments here.