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, ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Rathbones brings together responsible investment in Centre of Excellence

Rathbones brings together responsible investment in Centre of Excellence

Combines ethical and sustainable research capabilities

Patrick Brusnahan
clock 29 May 2026 • 1 min read
Why active management matters more for income investors

Why active management matters more for income investors

Significant implications for advisers and investors relying on passive income strategies

Rory Sandilands
clock 29 May 2026 • 4 min read
Can the energy crisis power renewables past their headwinds?

Can the energy crisis power renewables past their headwinds?

Renewables continue to see headwinds

Ian Aylward
clock 28 May 2026 • 3 min read