With the changing scenarios in world politics and surging concerns over the Russia-Ukraine conflict, the US economy plunged in the first three months of the year, plunging to -0.4% in the first quarter of the year. The economic growth exhibited monotonous graphs at the start of the year compared with the year 2021.
Attributing the plunge to slow economic activities in the global market, the consumer department claimed that the slowdown is the consequence of rising imports and a drop in the private inventory investment. The economy also seems to be affected even though consumer spending mushroomed to 0.7% in the first quarter of the year and 2.7% annually.
Despite the growth in consumer spending, the report of the first quarter of the year was severe and unexpected by the economists. The Economists expected the economy to get affected by the Russia-Ukraine war, Coronavirus and hiked oil prices, but the report exhibited a below-expected performance of the US economy.