(BEA) The US gross domestic product posted an annual decline of 1.4% in the first quarter of 2022, marking the first time the economy has contracted since 2020.
The current-dollar national output increased by 6.5% or $379.9 billion to reach $24.38 trillion. The increase was lower compared to 14.5% in the fourth quarter of 2021.
Net exports and inventories posted a 4-percentage point decline, while government spending also fell, which weighed on the GDP.
The personal consumption, which comprises the giant part of the economy, increased by an annualized 2.7%, higher than the previous 2.5%.
The decline in the national output happens even as the price index for domestic purchases rose 7.8% in the quarter, compared to a gain of 7.0% in the previous.
The PCE price index ticked higher by 7.0%, compared to the previous gain of 6.4%. The price index rose by 5.2%, excluding food and energy, compared to the previous 5.0%.
Overall disposable personal income rose by 4.8% or $216.6 billion in the quarter, higher than a surge of 0.4% or $20.1 billion in the previous quarter. The personal savings of $1.21 trillion was lower than the previous $1.39 trillion.
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