Gross domestic product in the U.S. declined at a 1.4% pace in the first quarter, below analyst expectations of a 1% gain.

Declines in fixed investment, defense spending and the record trade imbalance weighed on growth.

Consumer expenditures rose 2.7%, but that came amid a 7.8% increase in prices.

“This is noise; not signal. The economy is not falling into recession,” wrote Ian Shepherdson, chief economist at Pantheon Macroeconomics.

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