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US economy contracts 1.6% in first quarter amid record trade deficit

The US economy grew at a robust 6.9% pace in the fourth quarter

Photo: Reuters
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Photo: Reuters

Reuters Washington
The US economy contracted in the first quarter amid a record trade deficit, the government confirmed on Wednesday, but that picture is misleading as domestic demand was strong.

Gross domestic product fell at a 1.6% annualized rate last quarter, the government said in its third GDP estimate. That was revised down from the 1.5% pace of decline reported last month.

The economy grew at a robust 6.9% pace in the fourth quarter.

Economists polled by Reuters had forecast the pace of contraction would be unrevised at a 1.5% rate.

The decline in GDP last quarter also reflected a slower pace

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jun 29 2022 | 6:24 PM IST

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