U.S. GDP rose at a 1.1% pace in the first quarter as signs build that the economy is slowing  

• Growth in the U.S. slowed considerably during the first three months of the year as interest rate increases and inflation took hold of an economy largely expected to decelerate even further ahead.
• Gross domestic product, a measure of all goods and services produced for the period, rose at a 1.1% annualized pace in the first quarter, the Commerce Department reported Thursday. Economists surveyed by Dow Jones had been expecting growth of 2%. The growth rate followed a fourth quarter in which GDP climbed 2.6%, part of a year that saw a 2.1% increase.
• The outturn in Q1 2023 came on the back of an acceleration in consumer spending, which was offset by businesses cutting back on inventory investment in anticipation of weaker demand this year amid higher borrowing costs.
• The report showed that the personal consumption expenditures price index, an inflation measure that the Federal Reserve follows closely, increased by 4.2%, ahead of the 3.7% estimate. Stripping out food and energy, core PCE rose 4.9%, compared to the previous increase of 4.4%.
• While the economy was not in recession last quarter, the outlook is darkening. Credit conditions have tightened following recent financial market turmoil, which, together with the Federal Reserve's fastest rate hiking cycle since the 1980s, have raised the risks of a downturn by the second half of the year.

(Sources: CNBC & Reuters)