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The Biden Administration confirmed this Wednesday the economic setback in the first quarter of 2022, which was 0.4% compared to the previous quarter, and raised the annual rate of this fall by one-tenth of a percent, to 1.6%.
There were several indicators that pushed GDP down in the first three months of the year, such as exports, which declined, as did public spending and private investment.
There were several indicators that pushed GDP down in the first three months of the year, such as exports, which decreased, as did public spending and private investment.
Imports and consumer spending and residential fixed investment increased, according to this statistic.
However, the annual GDP estimate has been revised downward because consumption of goods and services increased less than initially estimated.
The U.S. economic data are released against a backdrop of fears of economic recession in the country.
High inflation, at 8.6%, according to the latest indicator for May, is the main concern of both the government and the Federal Reserve, which has raised interest rates again and intends to continue doing so until it manages to contain the rise in consumer prices.
In mid-June, the Fed announced a 0.75-point increase in the official interest rate, the largest increase in 28 years, and the Fed Chairman, Jerome Powell, said that another 0.75 or 0.5-point increase would most likely be made in July to fight inflation.
Powell has admitted that rate hikes may affect economic developments and even unemployment, but he has also insisted on several occasions that the priority is to contain high inflation.
