The first estimate, published at the end of April, had shown a contraction of 1.4% for the January-March period, an unexpected halt in a context of high inflation aggravated by the war in Ukraine and persistent problems in supply chains.
However, compared to the first quarter of 2021, US GDP grew by 3.5%.
“The risks to the economy and the probability of a recession are increasing,” said Lydia Boussour, an economist at Oxford Economics, describing however an “economy … that is strong and has shown resilience against omicron, the persistent supply constraints and high inflation.
Among the factors that most contribute to this decline are the declines in investment in inventories and the reduction in exports.
All this is a reflection of the persistent problems in global supply chains and the disruptions caused by the Russian invasion of Ukraine.
The BEA also pointed to a drop in investment by the federal government during that period, as well as state and city governments across the country.
With information from AFP and EFE
