U.S. economic growth slowed in the first part of the year, falling short of economists’ expectations.
Gross domestic product expanded at a 1.6% seasonally- and inflation-adjusted annual rate in the first quarter, the Commerce Department said Thursday, a pullback from the previous period.
Growth in the first quarter lagged behind the 2.4% projected by economists.
Low-income Americans are saving far less than they did prepandemic. Mortgage rates recently bounced back above 7%, leading home sales in March to post their biggest monthly drop in more than a year. Average hourly earnings in March rose at their slowest annual pace since June 2021.
Many economists still believe that those cracks will widen—slowing inflation—if and when the labor market loosens.
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