U.S. economic activity unexpectedly contracted in the first quarter of 2022, according to a report released by the Commerce Department on Thursday.
The report said real gross domestic product declined by 1.4 percent in the first quarter after spiking by 6.9 percent in the fourth quarter of 2021. The pullback surprised economists, who had expected GDP to increase by 1.1 percent.
The Commerce Department said the unexpected drop in GDP reflected decreases in private inventory investment, exports, and government spending along with an increase in imports, which are a subtraction in the calculation of GDP
On the other hand, the report showed increases in consumer spending, non-residential fixed investment and residential fixed investment.
