Posted on 04/28/2022 6:38:49 AM PDT by Oldeconomybuyer
WASHINGTON (AP) — The U.S. economy shrank last quarter for the first time since the pandemic recession struck two years ago, contracting at a 1.4% annual rate, but consumers and businesses kept spending in a sign of underlying resilience.
The weak showing does not mean a recession is likely in the coming months. Most economists expect a rebound in the April-June quarter as solid hiring and wage gains sustain growth.
Instead, the steady spending by households and companies suggests that the economy will likely keep expanding this year even though the Federal Reserve plans to raise rates aggressively to fight the inflation surge. The first quarter’s growth was hampered mainly by a slower restocking of goods in stores and warehouses and by a sharp drop in exports.
The Commerce Department’s estimate Thursday of the first quarter’s gross domestic product — the nation’s total output of goods and services — fell far below the 6.9% annual growth in the fourth quarter of 2021. And for 2021 as a whole, the economy grew 5.7%, the highest calendar-year expansion since 1984.
The economy is facing a range of pressures that have heightened worries about its fundamental health and raised concerns about a possible recession next year. Inflation is squeezing households as gas and food prices spike, borrowing costs mount and the global economy is rattled by Russia’s invasion of Ukraine and China’s COVID-19 lockdowns.
(Excerpt) Read more at apnews.com ...
AP trying to put a happy face on breathtakingly horrible economic news.
We kept spending because EVERYTHING COSTS MORE!
The indoctrinated, under 40 crowd tends to live in the moment. They spend without regard to consequence. If they want it, then it must be a need. No money? Plastic works.
Well yeah folks spend when you keep implying covid after covid ETC crisis’s!
It’s like when an inch of snow is expected here in Raleigh people go out and empty the shelves whether they need to or not!
US economy shrank by 1.4% in Q1 but consumers kept spending
What else can consumers do? Have you seen grocery prices lately? Or the price of gasoline?
STAGFLATION - STAGFLATION - STAGFLATION. Thanks DemocRATS!
Huh? The titles makes about as much sense as:
“Americans losing weight while eating more and not exercising”.
Presumably the shrinkage is in inflated dollars, which means that the economy dropped even more in real dollars.
.Gov loves inflation because it helps hide the bad news that .gov has caused.
And adjusting for the *real* level of inflation?
Don’t forget the RINOs down to the state level who aided and abetted the 2020 heist.
Unrelated, but your Moderna thread has no post#1, so no one can reply to your thread.
Just FYI.
Now, imagine how this article would have been written had this news come out under Trump...
Yep. I got an Error Message when posting.
Just wanted to give you a heads up. :)
Jimmy Carter and the late 70s are calling, a shrinking economy and spiraling inflation equals STAGFLATION...not seen since that late 70s and Jimmy Carter.
Bull Sheeeet. AP = Always Propaganda
Buying less stuff for more money.
"Spending" increased because everything costs 30% more than it did a year ago.
Nixon and Ford sucked too. Go back and look at inflation in 1974 thru 1983.
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