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US economic growth slows in Q1 as businesses liquidate inventories
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However, the decline in private inventories, the first in a year and a half, is potentially good news for the economy as it faces a possible recession by the end of the year.

Experts believe that this may suggest that businesses are closer to getting rid of unsold stock, putting them in a better position to rebuild inventory if needed.

The GDP increased at an annualized rate of 1.1% in the first quarter, compared to 2.6% in the previous quarter.

The drawdown in inventories, mainly by wholesalers and manufacturers, was the first since Q3 2021, and it appears to be both planned and the result of increased consumer spending.

Business spending on equipment was down for the second consecutive quarter, while overall business investment was sluggish, likely due to narrower profit margins. (ILKHA)



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