By comparison, the U.S. economy grew at an annual rate of 2.6 percent in the last three months of 2022. “The economy is in a very unsettling, dicey situation,” said Joseph LaVorgna, chief economist at SMBC Nikko Securities America. The job market and consumer spending, while robust, are slowing. “Consumer spending has been quite strong, but the report is backward-looking and overstates some of the strength of the consumers and the overall economy. AdvertisementThe tight job market is especially notable given the Fed’s sharp interest rate increases, which are aimed at slowing consumer demand in part by raising unemployment.

Source: Washington Post April 27, 2023 23:10 UTC