Slowdown in US Economy: Weakening Consumer and Government Spending Amidst Inflation

The US economy saw a slowdown in growth last quarter as consumer and government spending cooled amidst an increase in inflation. The country’s gross domestic product (GDP) increased at a 1.6 per cent annualized rate in January-March 2024, falling short of the expected 2.4 per cent rise. This growth rate was the weakest since mid-2022 and marked a clear slowdown from the previous quarter’s 3.4 per cent increase.

Personal spending, which is the primary growth driver of the US economy, also saw slower than anticipated growth at a 2.5 per cent pace. This loss of momentum at the beginning of 2024 comes after a strong year of economic performance in 2023.

As more information becomes available, it will be important to monitor these trends closely and assess their impact on the overall health of the US economy.