US economy unexpectedly shrinks 1.4% in first quarter of 2022

Below expectations

clock • 3 min read

US GDP unexpectedly shrank by 1.4% on an annualised basis in the first quarter of 2022, below expectations of 1% growth and down from 6.9% in the fourth quarter of 2021.

The US Bureau of Economic Analysis reported today that GDP had shrank for the first time since mid-2020 amid ongoing supply chain disruptions and rising inflation. The report stated that the decline had mainly been due to decreases in private inventory investment, a decrease in exports and an increase in imports, which overall contributed 4% to the decline. The US trade deficit widened to a record high in March, the US Commerce Department reported this week, while many businesses bought less inventory than normal throughout the quarter due to leftover merchandise from late last year, ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Investor demand meets 'relentless supply' of record-breaking US Treasury bond sales
US

Investor demand meets 'relentless supply' of record-breaking US Treasury bond sales

Government attempts to plug debt vacuum

Eve Maddock-Jones
clock 08 February 2024 • 4 min read
Jerome Powell: Fed united in cutting rates this year
US

Jerome Powell: Fed united in cutting rates this year

Timing brings risks

Eve Maddock-Jones
clock 05 February 2024 • 2 min read
T. Rowe Price's Ritu Vohora: US small cap stocks offer strong fundamentals and cheap valuations
US

T. Rowe Price's Ritu Vohora: US small cap stocks offer strong fundamentals and cheap valuations

Soft landing prospects

Ritu Vohora
clock 01 February 2024 • 4 min read
Trustpilot