U.S. economic growth slowed to a 1.1% annual rate in the first quarter of 2023, according to advance estimates by the .

• That鈥檚 below the consensus estimate of 2.0% and a slowdown from the 2.6% growth seen in the final quarter of 2022.
• In the prior decade, the U.S. economy grew at about 2.2% each year.

The details: Nonfarm businesses decreased their inventory stockpiles, removing 2.26 percentage points from top-line growth.

• A weakened housing market also contributed to slowed growth.
• While consumer spending was strong at the beginning of the year, it has slowed more recently as the Federal Reserve has continued raising interest rates, according to (subscription).
• Hiring growth is also easing, the Journal reports.

The good news: Goods consumption and government spending were strong contributors to growth, as were slight increases in net exports and nonresidential fixed investment.

What鈥檚 ahead: 鈥淢any economists expect the economy to cool even more as the year progresses, with the possibility of a U.S. recession later this year,鈥� according to the Journal.
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