New Delhi, April 25 -- The US economy slowed last quarter, growing at an annual rate of 1.6 per cent in a sign that the high interest rates may be taking a toll on borrowing and spending. Thursday's report from the Commerce Department said the gross domestic product, the economy's total output of goods and services, decelerated from its brisk 3.4 per cent growth rate in the final three months of 2023. Consumers continued to drive growth in the January-March quarter but slowed their spending. Growth was also held back by businesses reducing their inventories.
The state of the US economy has seized Americans' attention as the election season has intensified. Although inflation has slowed sharply, to 3.5 per cent from 9.1 per cent in 2022, pr...