The U.S. economy is losing steam. Bank woes and other hurdles are to blame.

A customer waits to order food at a Miami McDonald's on July 26, 2022. The CEO of McDonald's expects the U.S. to experience a mild recession and says customers have grown more reluctant to splurge on or supersize their orders. (Joe Raedle/Getty Images)

From banks to burger joints, the U.S. economy is showing signs of stress as nervous shoppers watch their spending and anxious lenders keep a tight grip on credit.

A report from the Commerce Department Thursday shows the nation's gross domestic product grew at an annual rate of just 1.1% in the first three months of the year, compared to a 2.6% pace in the previous quarter. Growth was weighed down by declining inventories and housing investment.