WASHINGTON (AP) — The American economy expanded at a 1.4% annual pace from January through March, the slowest quarterly growth since spring 2022, the government said in a slight upgrade from its previous estimate.

Consumer spending grew just 1.5%, down from an initial estimate of 2% in a sign that high interest rates may be taking a toll on the economy.

The Commerce Department had previously estimated that the gross domestic product advanced at a 1.3% rate last quarter.

Still, the report showed that the January-March slowdown was caused mainly by two factors — a surge in imports and a drop in business inventories — that don’t necessarily reflect the underlying health of the economy.