US Economy Shrunk in the First Quarter of 2022

Video Credit: Wibbitz Top Stories
Published on April 28, 2022 - Duration: 01:30s

US Economy Shrunk in the First Quarter of 2022

US Economy Shrunk , in the First Quarter of 2022.

The U.S. Commerce Department released its findings on April 28.

According to the report, gross domestic product (GDP) in the U.S. fell by 1.4 percent during the first quarter.

When the percentage is adjusted for inflation, GDP fell by less than half a percent.

By contrast, GDP during the first quarter of 2021 in the U.S. grew by 1.7 percent.

According to 'The New York Times,' international trade and inventories contributed the most to contraction.

Decreased spending by the U.S. government is also thought to have played a role.

Despite the numbers, consumer demand continues to grow.

This is reflected by a 0.7 percent increase in consumer spending for the first quarter.

Spending increased despite the onset of the Omicron COVID variant.

Consumer spending is the aircraft carrier in the middle of the ocean โ€” it just keeps plowing ahead, Jay Bryson, Chief Economist for Wells Fargo, via 'The New York Times'.

U.S. exports decreased due to strains on international economies.

The moral of the story is that the Omicron wave, the war in Ukraine and new lockdowns in China were more costly for growth abroad than they were at home, Diane Swonk, Chief Economist For Grant Thornton, via 'The New York Times'.

Despite the dismal report, underlying growth actually increased from the first quarter of 2021.

Domestic spending was remarkably resilient.

It actually accelerated, Diane Swonk, Chief Economist For Grant Thornton, via 'The New York Times'


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