(CNN) — Data from the Bureau of Economic Analysis on Thursday showed US economic growth slowed sharply in the first quarter of 2022.
The state’s gross domestic product, the broadest measure of economic activity, contracted at an annual rate of just 1.4% between January and March.
This number represents a marked slowdown from the 6.9% pace of growth seen in the last quarter of last year. Moreover, this is the worst performance since the pandemic recession in the second quarter of 2020. Investors were already preparing for the bad news for the economy. Expectations were that the latest GDP reading would show US economic growth slowing to 1.1% in the first three months of the year, according to Refinitiv.
Even the Now Atlanta Federal Reserve’s GDP model projected a seasonally adjusted annual growth rate of just 0.4% this Wednesday, implying a 1.3% drop in mid-April.
Economists also expected that growth would eventually slow from the pace seen during the grand reopening. But, even compared to pre-pandemic times, when the US economy was growing steadily at a more moderate pace, anything up to 1% would be a disappointment.
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