US Economic Growth Slows, Jobless Claims Fall

US Economic Growth Slows, , Jobless Claims Fall.

The Commerce Department released its Q1 gross domestic product report on April 27, Reuters reports.

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Economic growth slowed more than anticipated, increasing only at a 1.1% annualized rate.

Increased consumer spending was offset by a $1.6 billion decline in inventory investments.

Businesses anticipated weaker demand due to higher borrowing costs.

Reuters reports that disregarding "inventories, government and trade," economic growth reached 2.9%.

Next week, the Federal Reserve is expected to hike interest rates by 25 more basis points.

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Since March of last year, the Fed has raised rates by 475 basis points.

A separate Labor Department report showed initial unemployment claims fell by 16,000 for the week ending April 22.

Continuing claims remained low, as Reuters reports there were 1.7 new jobs per each unemployed person in February.

The current unemployment rate is at 3.5%