US slump is even worse

THE US economy shrank by more than expected at the start of the year as the rising price of imports pushed up the trade deficit.

It contracted by 1.5pc in the first three months of the year compared with the same period in 2021.

The number was revised from the 1.4pc given in the first estimate last month.

The first reading came as a surprise to experts, who thought the world’s biggest economy had grown by 1pc.

Despite wages failing to keep pace with inflation, consumer spending grew by 3.1pc at the start of the year. Unemployment is near a half-century low as businesses struggle to recruit.