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The U.S. economy expanded at a 1.3% annualized rate in the first quarter of 2024, marking a significant slowdown from the 3.4% growth seen in the final quarter of 2023. This deceleration was primarily driven by a decrease in private inventory investment and a slowdown in consumer spending, which grew by only 2.0% compared to 3.3% in the previous quarter. Business investment also contributed to the slowdown, with a 0.1% decline in fixed investment, a reversal from the 3.9% increase in Q4 2023. The Bureau of Economic Analysis reported that the personal consumption expenditures (PCE) price index, a key inflation gauge, rose by 3.1% in the first quarter, up from 1.9% in the fourth quarter, indicating a resurgence in inflationary pressures. Core PCE, excluding food and energy, also accelerated to a 2.8% increase, up from 2.0% in the prior period. Government consumption and investment saw a modest increase of 1.5%, contributing positively to GDP growth. The housing market also showed signs of cooling, with residential fixed investment declining by 11.0%. This report suggests a more challenging economic environment ahead, with inflation proving persistent and growth moderating.