US economic growth for last quarter revised up to 1.3% annual rate

The US economy grew at a lackluster 1.3 per cent annual rate from January through March as businesses wary of an economic slowdown trimmed their inventories, the government said on Thursday, a slight upgrade from its initial estimate.

The government had previously estimated that the economy grew at a 1.1 per cent annual rate last quarter.

The Commerce Department's revised measure on Thursday of growth in the nation's gross domestic product the economy's total output of goods and services marked a deceleration from the second half of 2022.

Despite the first-quarter slowdown, consumer spending, which accounts for around 70 per cent of America's economic output, rose at a healthy pace.

The steady weakening of economic growth is a consequence of the Federal Reserve's aggressive drive to tame inflation, with 10 interest rate hikes over the past 14 months. Across the economy, the Fed's rate increase have elevated the costs of auto loans, credit card borrowing and business loans.

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