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Q1 GDP Revised Lower To Just 1.3%, Lowest In Two Years As Consumption Slows (Most Of Biden’s “Growth” Came From Covid-related Policies In 2020)
Confounded Interest ^ | 05/30/2024 | Anthony B. Sanders

Posted on 05/30/2024 7:57:21 AM PDT by Kaiser8408a

What I like about Biden’s economy … nothing. Most of Biden’s economic growth came from Trump’s spending and Fed monetary policy from the Covid shutdown of 2020.

What was until recently a “red-hot” economy, with the US reportedly growing at an annual rate of 4.9% in Q3 and 3.4% in Q4 2024, has suddenly and dramatically downshifted, and according to the latest GDP data released from Biden’s BEA, Q1 GDP was revised downward from 1.6% to just 1.3% (1.250% to be specific), which was the lowest GDP since the mini-recession of Q2 when GDP declined for 2 quarters in a row.

The sharp downward revision primarily reflected a downward revision to consumer spending, which rose 2.0% annualized, down from 2.5% in the first GDP report and below the 2.2% estimate.

Drilling down into the number, the 1.3% increase reflected increases in consumer spending (below previous forecasts) and housing investment that were partly offset by a decrease in inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.

The increase in housing investment was led by brokers’ commissions and other ownership transfer costs as well as new single-family housing construction. The decrease in inventory investment was led by decreases in wholesale trade and manufacturing In terms of bottom-line contributions, we find the following:

Personal consumption accounted for 1.34% (down from 1.68%), or more than the entire GDP print. Fixed Investment added 1.02%, up from 0.91% in the first estimate. The change in private inventories subtracted -0.45%, a deterioration from the -0.35% estimated previously. Net trade (exports less imports), subtracted -0.89% from the bottom line print, comparable to the -0.86% detraction in the first estimate. Finally, government added just 0.23%, up from 0.21% initially estimated, yet still the lowest contribution since Q2 2022.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: consumer; gdp; spending

1 posted on 05/30/2024 7:57:21 AM PDT by Kaiser8408a
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To: Kaiser8408a

How much of this is government-induced spending? For starters, free money given away to illegals.


2 posted on 05/30/2024 8:03:44 AM PDT by CatOwner (Don't expect anyone, even conservatives, to have your back when the SHTF in 2021 and beyond.)
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To: Kaiser8408a

Creamy john peeair fails to mention that or address that in the daily pack of lies dispensation.


3 posted on 05/30/2024 8:06:41 AM PDT by rktman (Destroy America from within? Check! WTH? Enlisted USN 1967 to end up with this💩? 🚫💉! 🇮🇱👍!)
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To: Kaiser8408a
"Revised."

I'll have to try that next time I get pulled over for speeding.

"No, I was doing 75 in a 55 zone, but I revised that speed to 57 before you walked up. Will there be anything else, officer?"

4 posted on 05/30/2024 8:07:48 AM PDT by Frank Drebin (And don't ever let me catch you guys in America!)
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To: Kaiser8408a
Q1 GDP Revised Lower

Gee, where have I heard that before? It seems every quarter under a democrat admin includes this little note "This Quarter Was Stupendous, But The Previous Quarter Is Revised Lower"
5 posted on 05/30/2024 8:09:13 AM PDT by JoSixChip (2020: The year of unreported truths; 2021: My main take away from this year? Trust no one.)
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To: CatOwner

“Government induced ... free money”

It’s not free. It comes from either taxes we paid or from borrowed money.

The borrowed money must eventually be paid back (by we taxpayers), and interest must be paid on it (by we taxpayers) while it’s borrowed.


6 posted on 05/30/2024 8:21:41 AM PDT by cymbeline (we saw men break out of a concentration camp.”)
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To: cymbeline

I know damn well it isn’t free, but the people receiving it see the money no other way. It’s money they didn’t have before, and they didn’t have to do a damn thing to receive it.


7 posted on 05/30/2024 8:29:36 AM PDT by CatOwner (Don't expect anyone, even conservatives, to have your back when the SHTF in 2021 and beyond.)
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To: CatOwner

“I know damn well it isn’t free, but the people receiving it see the money no other way.”

You are absolutely correct. I worry that all of us receive something which makes it hard for our politicians to reduce spending.


8 posted on 05/30/2024 9:12:51 AM PDT by cymbeline (we saw men break out of a concentration camp.”)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; BraveMan; cardinal4; ...

9 posted on 05/31/2024 6:22:42 AM PDT by SunkenCiv (from "Sufragio Efectivo, No Reelección" to "Sufragio Efectivo No, Reelección")
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