Q1 GDP Rose 1.1%

Washington, DC, April 27, 2023-Real gross domestic product (GDP) increased at an annual rate of 1.1% in Q1 2023, according to the advance estimate released by the Bureau of Economic Analysis. In Q4, real GDP increased 2.6%.

The increase in real GDP reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased.

"Consumption, the main driver of the economy, was a bright spot. Fueled by an ability to spend from higher incomes and built-up savings, consumers propped up growth with a surge of buying early in the year that has since abated," reports the Wall Street Journal.