GDP sees minor growth as inflation still cuts into the economy

by ian


Data released by the government on Thursday showed an unexpected growth in the economy, though not one to really write home about.

Data on the gross domestic product – or GDP – showed a 1.3% annual growth rate. The government had previously expected a 1.1% rate, so while this number is still on the lower side it ended beating previous expectation.

Unsurprisingly, the number was little changed due to inflationary woes. While consumer spending was strong, business investment declined.

The data also showed a shift in priorities with more Americans spending money on services rather than specific goods.

In addition, the overall measure for inflation rose 4.2% in the first quarter of fiscal year 2023. This measure increased by 3.7% in the last quarter.