US GDP growth for Q1 2023 came in at a mere 1.1% annualized, significantly below the expected 2.0%.
The increase in real GDP can be attributed to rises in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment.
However, these increases were partially offset by declines in private inventory investment and residential fixed investment. Meanwhile, imports, which are subtracted when calculating GDP, also increased.
Price index for gross domestic purchases rose by 3.8% in Q1, compared to the 3.6% increase recorded in Q4. Personal Consumption Expenditures price index saw a 4.2% increase, up from the previous quarter’s 3.7% increase. Excluding food and energy prices, PCE price index climbed by 4.9%, compared to 4.4% increase in the previous quarter.