U.S. gross domestic product slowed to a lower than expected 1.6% in the first quarter, according to a Thursday Bureau of Economic Analysis report. In the fourth quarter 2023 It was 3.4%.

The U.S. economy likely grew at a slower pace in Q1, as consumer spending remains strong in the backdrop of a resilient labor market. The Bureau of Economic Analysis will publish its first gross domestic product estimate for Q1 before the bell on Thursday.

U.S. economic growth slowed more than expected in the first quarter, but a surprisingly hot quarterly Personal Consumption Expenditure inflation component suggested that the Federal Reserve would not cut interest rates before September.