The U.S. Economy only grew at a 1.1% rate in the first quarter of this year, much lower than expected, a strong indication Recession may be coming later this year. Estimates were for 2.0% growth. The combination of massive Interest Rate hikes by the Federal Reserve, and high inflation is starting to be seen in the Economy.<\/p>\n\n\n\n
\nThe numbers:<\/strong> The U.S. economy grew at a soft 1.1% annual pace in the first three months of this year, as declining business investment offset strong consumer spending and pointed to slowing growth.<\/p>\n\n\n\n
Wall Street analysts had forecast a 2% increase\u00a0<\/a>in gross domestic product, the official scorecard for the economy. GDP had expanded 2.6% in the fourth quarter.<\/p>\n\n\n\n
Consumer spending, the main engine of U.S. growth, drove the economy forward in the first quarter. Outlays jumped at a 3.7% clip, the government said Thursday<\/a>, the biggest increase in almost two years.<\/p>\n\n\n\n
Households got little help from businesses, however, and probably can\u2019t expect much in the near future. Companies cut investment and reduced production, shaving 2.3 percentage points off headline GDP.<\/p>\n\n\n\n
Rising interest rates and stress in the banking system have hurt business investment while softening sales has forced some companies to lay off workers.<\/p>\n\n\n\n