US gross domestic product, the broadest measure of economic activity, decreased at an annualized rate of 1.5% between January and March, adjusted for seasonal swings, according to the second estimate of the data.
Some economists fear this could mean the nation might be headed for another recession, commonly defined as two quarters of declines in GDP.
The update was driven by revisions to private inventory and residential investments, even as consumer spending was revised higher. However, higher imports to feed continued strong demand were a drag on GDP in the first months of the year.
Core inflation, measured through the price index tracking personal consumption expenditures minus food and energy costs, was revised down to 5.1% from 5.2% in the initial report.
Is a recession looming?
No matter the update, the message remains the same: The US economy witnessed a sharp slowdown in the first months of the year, compared with the 6.9% growth…
