US economy unexpectedly shrinks 1.4% in first quarter of 2022

Below expectations

Elliot Gulliver-Needham
clock • 3 min read

US GDP unexpectedly shrank by 1.4% on an annualised basis in the first quarter of 2022, below expectations of 1% growth and down from 6.9% in the fourth quarter of 2021.

The US Bureau of Economic Analysis reported today that GDP had shrank for the first time since mid-2020 amid ongoing supply chain disruptions and rising inflation. The report stated that the decline had mainly been due to decreases in private inventory investment, a decrease in exports and an increase in imports, which overall contributed 4% to the decline. The US trade deficit widened to a record high in March, the US Commerce Department reported this week, while many businesses bought less inventory than normal throughout the quarter due to leftover merchandise from late last year, ...

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