The U.S. gross domestic product (GDP) growth rate slowed down to an annual rate of 1.6 percent in the first quarter of this year, the U.S. Department of Commerce reported on Thursday.

The latest data marks a sharp slowdown from the fourth quarter in 2023, when GDP grew by 3.4 percent, according to the Bureau of Economic Analysis.

Compared to the fourth quarter, the deceleration of real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending. These movements were partly offset by an acceleration in residential fixed investment.

The newly released GDP estimate for the first quarter, in what was called an "advance" estimate, is based on source data that are incomplete or subject to further revision by the source agency. The "second" estimate for the first quarter, based on more complete source data, will be released on May 30.