United States economy

Gross domestic product (GDP) in the United States declined by 1.4% year-on-year in the Q1 2022. This follows preliminary data released by the US Department of Commerce on Thursday.

"Real GDP declined year-on-year by 1.4% in the first quarter of 2022 after rising 6.9% in the fourth quarter of 2021. In the first quarter, there was a repeat increase in cases of infection with the omicron variant of the new coronavirus and a reduction in government payments for pandemic relief," the paper said.

It is worth noting that experts previously polled by Reuters had expected the annualised US Gross domestic product (GDP) growth figure for the first quarter to be 1.1 per cent.

Consumer spending, which accounts for two-thirds of US GDP, rose 2.7% in the first quarter. Corporate capital expenditure rose by 7.3%.

Also, the PCE Core index, which the Federal Reserve closely monitors when assessing inflation risks, rose 5.2% in the first quarter after rising 5% in the previous three months.

The information provided by the Ministry of Energy is the first estimate of the US Gross domestic product (GDP) change out of three. Publication of the revised data is expected at the end of May.