US gross domestic product unexpectedly fell at a 1.4% annualized rate in Q1, marking a major reversal for an economy coming off its best performance since 1984.
- The decline in growth rate missed the subdued Dow Jones estimate of a 1% jump for the quarter. A series of factors conspired to slow down growth during the first three months of 2022, which plunged after the 6.9% jump to close out last year.
- Prices rose sharply during the quarter, with the GDP price index deflator increasing 8%, after a 7.1% increase in Q4.
- Personal income rose by $268.0 billion in Q1, compared with an increase of $123.9 billion in Q4, largely driven by an increase in compensation.
Disposable personal income rose by $216.6 billion or 4.8% in Q1, compared to an increase of $20.1 billion or 0.4% in Q4.
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Source: Bureau of Economic Analysis