US GDP shows slower Q1 growth

WASHINGTON - US growth declined significantly in the year's first quarter, amid the double whammy of interest rate hikes and the worst inflation in decades.

Gross domestic product (GDP), which measures all goods and services produced, climbed an annualized 1.1 percent in the first three months in the United States, according to data released by the Commerce Department Thursday.

The number was considerably lower than the fourth quarter's 2.6 percent growth. It was also less than the 2 percent growth predicted by economists surveyed by Dow Jones.

"The US economy is likely at an inflection point as consumer spending has softened in recent months," said Jeffrey Roach, chief economist at LPL Financial, as quoted by NBC News.

"The backward nature of the GDP report is possibly misleading for markets as we know consumers were still spending in January but since March, have pulled back as consumers are getting more pessimistic about the future," Roach said.

Thursday's release was the Commerce Department's "advance" estimate.