Posted on 03/30/2022 7:12:38 AM PDT by Oldeconomybuyer
WASHINGTON, (Reuters) - The U.S. economy grew robustly in the fourth quarter, the government confirmed on Wednesday, but momentum has slowed significantly amid a surge in COVID-19 infections at the start of the year, snarled supply chains and soaring inflation.
Gross domestic product increased at a 6.9% annualized rate, the Commerce Department said in its third estimate of fourth-quarter GDP growth. That was revised slightly down from the 7.0% pace estimated in February.
The economy grew at a 2.3% rate in the third quarter. Growth is 3.1% above its pre-pandemic level. Economists polled by Reuters had expected GDP growth would be revised up to a 7.1% rate. The revision to the fourth-quarter GDP reading reflected downgrades to consumer spending and export growth.
For all of 2021, the economy grew 5.7%, the strongest since 1984, after the government provided nearly $6 trillion in pandemic relief. It contracted 3.4% in 2020, the biggest drop in 74 years.
Corporate profits growth slowed significantly in the fourth quarter as domestic financial corporations suffered a decrease. There were also moderate increases in profits of domestic nonfinancial corporations and from the rest of the world.
Corporate profits with inventory valuation and capital consumption adjustments increased at a $20.4 billion rate in the fourth quarter after rising at a $96.9 billion pace in the third quarter.
(Excerpt) Read more at nasdaq.com ...
The .gov loves inflation—it helps them brag about “economic growth” while average folks get crushed by rising prices.
Inflation on inventory is good, until you need to replenish.
Is it factored in that the GDP grew in dollars, but those dollars are worth significantly less?
I supposed GDP is not in inflation adjusted dollars. I also believe that government spending is part of the GDP calculation. If anyone know this for a fact, please advise.
But what was the GDP increase in REAL (I.e., factoring out inflation) terms?
Agreed, this why things took that kind of a hit from 1981 to 1983 because of the corrections Reagan implemented, but in later 1983 and on into 1984, things got that good bit better.
The .gov loves inflation
The more something costs the more tax money increases democrats love that gig it’s why they don’t worry about it.
Some of that paying your fair share going on aka stick it to everybody.
More output, but declining profits. Guess what comes next?
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