Advance estimate of U.S. GDP growth of 1.1% in Q1 puts pressure on Fed

The U.S. economy recorded real GDP growth at an annual rate of 1.1 percent in first quarter 2023, according to the advance estimate from the Bureau of Economic Analysis, released April 27. This is down from the 2.6 percent annualized GDP growth reported in fourth quarter 2022.

GDP growth was supported by increases in consumer spending, as well as exports, government spending and nonresidential fixed investment. This was offset by an increase in imports and decreases in private inventory investment and residential fixed investment.

Ryan Brandham, head of global capital markets, North America at Validus Risk Management, said of the U.S. GDP figure: “U.S. GDP came in at 1.1 percent — a weaker print than expected. The lagged effects of the 2022-2023 U.S. rate hiking cycle may finally b