US Growth Slows to 1.4% in Q1 2024

The U.S. economy grew at an annual rate of 1.4% in Q1 2024, a slight upward revision from previous estimates but a significant slowdown from the 3.4% pace in Q4 2023. The deceleration was driven by reduced consumer spending, increased imports, and a drop in business inventories, though business investment saw a notable rise. Inflation for the quarter was recorded at 3.1%, and jobless claims saw a decrease, indicating a mixed economic outlook. Analysts suggest that high interest rates are impacting consumer behavior and spending, which could lead to further economic slowdown or even a recession. Despite these challenges, the economy has shown resilience, with continued job growth and some forecasts predicting stronger growth in the upcoming quarter. Economists remain divided, with some foreseeing a recession due to constrained credit and dwindling consumer savings.