Source: Sharecast
According to the Department of Commerce, in seasonally adjusted terms, gross domestic product grew at a quarterly annualised pace of 1.6%.
That was down from the 3.4% clip observed over the last three months of the previous year.
It was also less than the 2.5% rate forecast by the consensus.
On the prices front, Commerce pegged the rate of increase in the core price deflator for personal consumption expenditures at 3.7%, which was up from 2.0% in the preceding quarter.
Less consumption, but many more imports, together with less inventory building and a slowdown in public sector spending accounted for the decline in GDP growth.
Private domestic investment on the other hand expanded at a 3.2% pace, after a rise of 0.7% in the fourth quarter of 2023.
Furthermore, final sales to private domestic purchasers surged by 6.1% - a measure of underlying demand - the most since 12 months before.
In response to the inflation data contained in Thursday's report, in particular, as of 1503 BST, the yield on the benchmark 10-year U.S. Treasury note was nine basis points higher to 4.733%.
"As for the growth outlook, we expect to see more subdued activity in upcoming quarters. The divergence between business surveys and official data is very wide," said James Knightley chief international economist at ING.
"We strongly suspect that business caution will translate into weaker hiring and wage growth and subdued business capex, and that will eventually show up in the official GDP data. The move higher in market borrowing costs this year will also weigh on activity and eventually dampen price pressures in the economy. Nonetheless, there is next to no chance of a rate cut before September."
