Q1 2023 Economic Reports
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GDP GROWTH: TRENDING IN Q1 2023
The nation’s gross domestic product slowed dramatically in the first quarter, reflecting reduced production of goods and services that rose at a seasonally adjusted 1.1% annual rate in the first three months. Nevertheless, the Q1 data released by the Commerce Department shows that consumers still are spending despite higher prices driven by high inflation, which the Federal Reserve is trying to stifle by raising interest rates. Spending on travel, restaurants, and other services continues to rebound. Purchases of goods also rose after four straight quarters of declines.
EMPLOYMENT: TRENDING IN Q1 2023
Although nonfarm U.S. employment gains totaled 236,000 in March and the 3.5% unemployment rate was little changed, job openings fell to their lowest level in nearly two years, a sign to some economists of an easing labor market.
MONETARY POLICY: TRENDING IN Q1 2023
The Federal Reserve increased interest rates twice in the first quarter, bringing the benchmark borrowing rate to a new 4.75%-5% target range – the highest since the mid-2000s – as Fed Chairman Jerome Powell signaled the need for more tightening was increasing.
GLOBAL ECONOMY: TRENDING IN Q1 2023
It’s been one year since central banks began raising interest rates to slam the brakes on inflation. Although pricing pressures have receded, risks to financial stability have increased along with pessimism that a soft landing can be achieved.
