US Economic Growth Slows Sharply in 1st Quarter as Interest Rates Rise

Shoppers look at items displayed at a grocery store in Washington, on Feb. 15, 2023. Stefani Reynolds/AFP via Getty Images

The U.S. economy expanded by 1.1 percent in the first quarter, down from 2.6 percent in the fourth quarter, according to the Bureau of Economic Analysis (BEA). This also came in below economists’ expectations of 2 percent.

This was the slowest quarterly growth since the second quarter of 2022.