Major disappointment: Economy shrank at 1.4% annual rate in first quarter

GDP contracted at a 1.4% annualized rate in the first quarter, the Bureau of Economic Analysis reported Thursday morning, meaning that slowing commerce added to the woes of high inflation.

The decline in GDP, which is adjusted for inflation, is a major reversal from the previous quarter, when growth soared to a 6.9% rate as businesses began healing faster from the pandemic. It's the first such contraction since the second quarter of 2020, when the economy suffered the massive shock of coronavirus shutdowns.

Friday's report means that President Joe Biden now has to contend with bad GDP numbers, in addition to the soaring inflation that has strained households and driven down his approval ratings. Inflation rose to 8.5% in March, according to the consumer price index.