US real GDP contracts for the first time since 2020

Real GDP contracted at an annual rate of 1.4% in Q1 2022, according to the advance release published by the Bureau of Economic Analysis, following annualised growth of 6.9% in Q4 2021. Personal consumption expenditures increased by 2.7% and gross private domestic investment by 2.3%, but government consumption expenditures and gross investment declined by 2.7% largely due to reduced defence spending on intermediate goods and services.

Exports of goods and services also contracted, by 5.9%, while imports increased by 17.7%, led by durable goods. Decreases in private inventories (stocks), mainly in wholesale and retail trade, are subtracted from GDP along with government consumption and net trade volume.
 

Further data and analysis on the US economy are available on the CEIC US Economy in a Snapshot – Q2 2022 report.