US economy shrinks by 1.4% in Q1

The annualized pace of US real GDP growth in Q1 2022 came in at a negative 1.4%, according to data released by the US Bureau of Economic Analysis on Thursday. That was a big miss on expectations that the economy had grown at an annualized pace of 1.4% in Q1 and marked a significant turnaround in fortunes from Q4 2021’s robust 6.9% annualized growth rate.

Meanwhile, the GDP Price Index for Q1 saw a bigger than expected jump to 8.0% from 7.1% in Q4 versus an expected rise to 7.3%, though Core PCE Prices saw a slightly smaller than expected rise to 5.2% from 5.0%, versus forecasts for a 5.4% rise.