American First Quarter Economic Activity Declined at Annualized Rate of 1.4 Percent

The U.S. economic activity for the first quarter of this year declined at an annualized rate of 1.4 percent, the Commerce Department reported Thursday.

The report, issued by the agency’s Bureau of Economic Analysis, attributed the decline in large part to the spike in COVID-19 cases, per Just the News.

“In the first quarter, an increase in COVID-19 cases related to the Omicron variant resulted in continued restrictions and disruptions in the operations of establishments in some parts of the country,” the bureau said.

The bureau also said the decline resulted from the decrease in government assistance payments in the form of forgivable business loans, grants to state and local governments and social benefits to households “as provisions of several federal programs expired or tapered off.”