SAN FRANCISCO, CALIFORNIA - APRIL 13: Shoppers ride an escalator at the Westfield San Francisco Centre on April 13, 2022 in San Francisco, California. French commercial real estate company Unibail-Rodamco-Westfield announced plans to sell off two dozen of its U.S. malls, including the Westfield San Francisco Centre, to focus exclusively on the company's European properties. (Photo by Justin Sullivan/Getty Images)

WASHINGTON (AP) — The U.S. economy shrank in the first three months of the year even though consumers and businesses kept spending at a solid pace, the government reported Thursday in a slight downgrade of its previous estimate for the January-March quarter. Last quarter’s 1.5% drop in the U.S. gross domestic product does not likely signal the start of a recession. The contraction was caused, in part, by a wider trade gap and by a slower restocking of goods in stores and warehouses, which had built up their inventories in the previous quarter for the 2021 holiday shopping season. Analysts say the economy has likely resumed growing in the current April-June quarter.