First-quarter US GDP revised to 2.2%, vs 2.3% growth expected

CNBC via Reuters ^ | 05/30/2018

[SeekAndFind]

U.S. economic growth slowed slightly more than initially thought in the first quarter amid downward revisions to inventory investment and consumer spending, but income tax cuts are likely to boost activity this year.

Gross domestic product increased at a 2.2 percent annual rate, the Commerce Department said in its second estimate of first-quarter GDP on Wednesday, instead of the previously reported 2.3 percent pace. The economy grew at a 2.9 percent rate in the fourth quarter.

There are signs GDP growth gathered momentum early in the second quarter, with solid consumer spending, business investment on equipment and industrial production in April. But the housing market appears to have taken a further step back

Economists expect a $1.5 trillion income tax cut package, which came into effect in January, will spur faster economic growth this year and lift annual GDP growth close to the Trump administration's 3 percent target.

Economists had expected first-quarter GDP growth would be unrevised at a 2.3 percent pace. The government also reported that after-tax corporate profits surged at a 5.9 percent rate last quarter after increasing at a 1.7 percent pace in the fourth quarter.

That was the fastest pace of growth in profits since the first quarter of 2016 and reflected a boost from the reduction in the corporate tax rate to 21 percent from 35 percent. According to the Commerce Department, taxes on corporate income decreased $117.4 billion in the first quarter.

[goldstategop]

Bad news for Democrats.

They were not expecting economic growth.

And the fake news media is having a Debbie Downer as a result.

[central_va]

Despite what seems the Feds doing everything to slow GDP growth.

[SeekAndFind]

U.S. Economic Growth Is Expected To Rebound In The Second Quarter

(EXCERPT):

US GDP growth in the second quarter is on track to accelerate, based on the median estimate of several forecasts compiled by The Capital Spectator. If accurate, economic output is set to strengthen to a real 3.6% increase (seasonally adjusted annual rate) in Q2, a solid improvement over the subdued 2.3% increase reported for Q1.

One of the six forecasts calls for a slowdown in growth: Trading Economics' outlook, which reflects a mix of macro modeling and analysts expectations, sees US growth dipping to a sluggish 2.1% in Q1. Otherwise, the remaining five projections in the chart below anticipate a solid rebound for the government's April through June GDP report that's scheduled for release in late July. The Atlanta Fed's GDPNow model is currently posting the strongest projection at the moment: 4.0%, based on the May 9 update.

[rktman]

So, PDJT’s economic plan isn’t working out as planned huh? LOL! You know the spin the lsm will put on it. Even if it’s .1 lower it will be a YUGE blow to the Trump White house.

[daler]

Recall the stagnant (nearly deceased) Obama economy that produced quarterly economic numbers that seemed to defy any sense of logic or reality?

Now, it seems we're seeing the same type of thing, only in reverse.

All the deregulation, tax cuts, expanding job market etc. under DJT and all we're seeing is 2.2% growth?

I smell the deep state at work.

[Theoria]

[Parley Baer]

It will take awhile for the tax cuts to take effect in the economy. We are now seeing the benefits here in the 2nd quarter.

[fedupjohn]

Also when imports rise that is removed from the GDP. So the economy is growing but since we aren't manufacturing the products it becomes a liability. Go figure.