What changed? Consumer spending actually increased since the first GDP growth report a month ago. However, a worsening trade deficit & residential investment offset the growth in consumer spending.
Why this matters Q1-2022 GDP growth represents the worst quarter since Q2-2020, which fell more than 31% as the pandemic hit. Analysts don’t see any more negative growth in 2022, but also don’t expect the same growth rates the U.S. has seen post-Q2-2020.