I am installing a new sink and it will only leave about 1" between the bottom of the sink and the outflow pipe. Do I need to lower the outflow pipe or is that enough room?

I think you'll need to lower the pipe.

With a great deal of creativity, you MIGHT be able to connect to the drain pipe, but you might always have standing water in the drain fitting.

Are you planning on installing a garbage disposer below the sink to lower the outlet even further?

No, nothing but the sink drain going to the outflow pipe. Is it that you need the physics of the water down the pipe to get it to go out? Why wouldn't water always sit in the bottom of the u since there is always a u that sits below the exit, it seems? Why can't or shouldn't the drain just go straight down into that pipe? At this point, just curious since it seems the pipe is supposed to be lowered, just can't figure out why that is the right way to do it.

The "U" pipe holds water as a seal against sewer odors from entering the home. Just going straight into the wall pipe will allow sewer gases to freely flow into your home.

Ah, ok! Thanks for all the responses.