US GDP unexpectedly contracted -1.4% annualized in Q1, much worse than expectation of 1.1% growth. That’s also the first contraction reading since Q2 2020.
The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased. Personal consumption expenditures (PCE), nonresidential fixed investment, and residential fixed investment increased.
