Shrank..

 

The U.S. economy shrank at an annualized pace of 1.6% in the first quarter, reflecting a deeper contraction than previously reported.

The Bureau of Economic Analysis's third and final estimate of first-quarter GDP released showed a 1.6% annualized drop in economic growth to start 2022.

In the fourth quarter of 2021, real GDP increased 6.9%.

"The update primarily reflects a downward revision to personal consumption expenditures (PCE) that was partly offset by an upward revision to private inventory investment," the BEA said in its press release.

Personal consumption expenditures rose 1.8%, compared to the previously reported 3.1% increase.

While the latest GDP report pointed to a slowdown in economic growth, the headline figure was skewed by a jump in the U.S. goods trade deficit amid severe supply chain disruptions driven by Sanctions against Russia.