The U.S. economy shrank 1.6% at the start of 2022—but recession is not imminent, economists say
The 777 factory line, left, is seen next to the 787 line, right, at Boeing's Everett Production Facility Wednesday, June 15, 2022, in Everett, Wash.WASHINGTON — The U.S. economy shrank at a 1.6% annual pace in the first three months of the year, the government reported Wednesday in a slight downgrade from its previous estimate for January-March quarter.
Last month, the Commerce Department had pegged first-quarter GDP growth at 1.5%. But on its third and final estimate Wednesday the department said consumer spending — which accounts for about two-thirds of economic output — was substantially weaker than it had calculated earlier, growing at a 1.8% annual pace instead of the 3.1% it estimated in May.That was partly offset by a revision to its calculation of business inventories.
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