Despite a greater than expected slowdown in the first quarter of the year, the US economy remains solid compared to historical standards. The steady decline in economic growth over the past year indicates a positive outlook for lower interest rates, but the Federal Reserve has clarified that they are not in a rush to cut rates.
The Commerce Department has reported that gross domestic product, which measures all services and goods produced in the economy, grew at an annualized rate of 1.6% in the first quarter. This is a significant decrease from the 3.4% rate seen in the fourth quarter and falls below the 2.2% rate projected by economists in a FactSet poll. These figures are adjusted for seasonal fluctuations and inflation.
As the story unfolds, updates will be provided as more information becomes available.