[ad_1]
It arrives after a series of aggressive rate hikes by the Federal Reserve aimed at pouring cold water over the economy and bringing down inflation after year-over-year price growth surged throughout 2022.
Inventory reduction by businesses helped account for much of the first-quarter slowdown, with overall growth taking a hit of approximately 2.3% thanks to that trend – normally a sign of an impending economic dip.
The quarter also saw banking chaos grip the US financial system after the collapse of Silicon Valley Bank and Signature Bank, causing many financial institutions to tighten lending criteria and make it more difficult for borrowers to access credit.
Analysts believe the economy will decelerate even further between April and June, with polling by data firm FactSet showing economists expect growth will slow to a 0.3% crawl during that period.
Still, consumer spending remained resilient in the first quarter of the year, setting a 3.7% growth clip and hitting its fastest pace for almost two years thanks in large part to strong spending on goods.
[ad_2]
Source link
