Tipsheet

New GDP Numbers Show the Economy is Shrinking

New economic numbers show during the first quarter of the year, the U.S. Gross Domestic Product shrank by 1.5 percent. 

"Real gross domestic product (GDP) decreased at an annual rate of 1.5 percent in the first quarter of 2022 (table 1), according to the "second" estimate released by the Bureau of Economic Analysis," the BEA released Thursday morning. The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month.  In the advance estimate, the decrease in real GDP was 1.4 percent. The update primarily reflects downward revisions to private inventory investment and residential investment that were partly offset by an upward revision to consumer spending." 

"The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased," they continued. 

Meanwhile, inflation and gas prices continue to hit new records with no signs of slowing down.