The decrease in real GDP reflected decreases in exports, federal government spending, private inventory investment, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased. Non-residential fixed investment, personal consumption expenditures (PCE) and residential fixed investment increased.

The decrease in exports reflected widespread decreases in non-durable goods. The decrease in federal government spending primarily reflected a decrease in defense spending on intermediate goods and services. The decrease in private inventory investment was led by decreases in wholesale trade. The increase in imports was led by an increase in goods.

Current-dollar GDP increased by 6.6 per cent (revised) at an annual rate, or $383.9 billion, in Q1 2022 to a level of $24.39 trillion.

Fibre2Fashion News Desk (DS)