- The US economy was slowing even before the brunt of any credit crunch stemming from the recent bank failures, while inflation accelerated, highlighting the enormous challenge faced by the Federal Reserve.
- Gross domestic product rose an annualized 1.1% in the first quarter, notably less than the median forecast for 1.9% in Bloomberg’s survey, Bureau of Economic Analysis data showed Thursday.
- The slowdown was largely driven by an inventory drawdown, with an acceleration in consumer spending providing the main impetus for growth. Still, economists warned that momentum slowed as the quarter progressed, in a warning sign for the current quarter.
