Consumer spending slowed in the first quarter, bringing U.S. GDP growth down to a 1.3% annual rate. The number matched forecasts and is down from the advance estimate of 1.6%. With the second estimate, downward revisions to consumer spending, private inventory investment, and federal government spending were partly offset by upward revisions to state and local government spending, nonresidential fixed investment, residential fixed investment, and exports. Momentum appears to be slowing as consumers struggle with lingering inflation pressures. The release was in line with other reports that show consumers balking at higher prices and seeking discounts. Major retailers such as Target and Walmart have recently announced price decreases across a wide range of products.
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