US economy saw ‘unexpectedly severe’ drop in first three months of year

US economy contracted by -0.4% in first quarter, its weakest quarter since the early days of the pandemic

The US economy shrank in the first three months of the year, contracting by -0.4% in the first quarter, or -1.4% on an annualized basis, its weakest quarter since the early days of the pandemic.

Economic growth slowed markedly at the start of the year. In the last three months of 2021 US gross domestic product (GDP) - a broad measure of the economy - grew by 1.7% or 6.9% on an annualized basis.