Key takeaways
- US GDP only grew by 1.1% in Q1, missing expectations of 1.9% economic growth
- Treasury yields rose and stock markets made gains at the news
- Other economic indicators suggest a recession is on the way, but it could be mild
New government data revealed US GDP didn’t grow as much as expected in the first quarter of 2023, adding to existing fears about a recession being on the way. It adds to the mixed outlook from the rest of the economic data on housing, manufacturing and money supply this week.
Despite fears of a pending recession, the markets were unphased and have continued their rally. The GDP data also suggests an interest rate hike is all but confirmed, though other factors could influence the decision. We’ve got the lowdown on what the figures mean, how Wall Street reacted and whether a recession is on the coming or not.
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