The US economy showed a more significant slowdown than anticipated in the first quarter of the year, although it still maintained a healthy position compared to historical norms. Over the past year, economic growth has been on a gradual decline, which suggests a favorable environment for reduced interest rates. However, the Federal Reserve has emphasized that it is not eager to implement rate cuts.
According to the Commerce Department's report on Thursday, the gross domestic product (GDP), which gauges the total value of goods and services produced in the country, grew at an annualized rate of 1.6% in the first quarter. This represents the slowest growth since the economy contracted in the second quarter of 2022.
This growth rate is a notable deceleration from the 3.4% rate seen in the fourth quarter and falls short of the 2.2% forecasted by economists in a FactSet survey. These figures are adjusted to account for seasonal variations and inflation.
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