Posted on 04/25/2024 7:50:45 AM PDT by lasereye
The US economy grew at a slower pace than expected in the first quarter.
The Bureau of Economic Analysis's advance estimate of first quarter US gross domestic product (GDP) showed the economy grew at an annualized pace of 1.6% during the period. Economists surveyed by Bloomberg estimated the US economy grew at an annualized pace of 2.5% during the period.
The reading came in significantly lower than fourth quarter GDP, which was revised up to 3.4%.
The softer-than expected print is a sign that the Federal Reserve's historic interest rate hikes are putting pressure on consumers and the economy. Investors have been closely watching economic data releases for clues on when the central bank will begin to lower rates.
For the quarter, personal consumption growth declined to 2.5% from 3.3% in the prior quarter. Economists had expected a 3% increase.
"Compared to the fourth quarter, the deceleration in real GDP in the first quarter primarily reflected decelerations in consumer spending, exports, and state and local government spending and a downturn in federal government spending," the BEA said in its release. "These movements were partly offset by an acceleration in residential fixed investment. Imports accelerated."
The slower than projected economic growth came alongside a surprisingly high inflation reading. The "core" Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 3.7% in the first quarter, above estimates for 3.4%, and significantly higher than 2% gain seen in the prior quarter.
Stock futures tied to all three major indexes shot lower after the release while bond yields rose. The 10-Year Treasury yield (^TNX) added nearly seven basis points to reach above 4.7% for the first time since early November 2023.
(Excerpt) Read more at finance.yahoo.com ...
“Unexpectedly”.....Due to white males....
Stagflation is here for the next few years.
showed the economy grew at an annualized pace of 1.6% during the period. Economists surveyed by Bloomberg estimated the US economy grew at an annualized pace of 2.5% during the period.
None of my airplane models in my youth actually flew..............
Lead stories for the last month have been "why do people think the economy is so bad ... when the data shows its really good?"
Consumer prices rose at a 4.2 percent annual rate in the first quarter, according to the data released Thursday, faster than at the end of last year and well above the Fed’s target of 2 percent. GDP Report: US Economy Grew at 1.1% Rate in Q1 - The New York …
www.nytimes.com/2023/04/27/business/economy/gdp-q1-economy.html
When the inflation exceeds the growth, we call that a recession.....
Come on man, Yahoo reported what they did because they cherry pick the info!
God knows what percentage of gdp is produced by the government at this point. Last I checked it was 42%…. In certain it’s gotten higher since the old coot got into office.
And I would bet A LOT of money that that 1.6% will get revised downward and the revised number will then be hidden on the back pages of newspapers.
What that really means is that we be in a recession even right now.
1.6% “growth” on a 6.something% federal deficit (borrowing).
Because communism sucks. Morons.
BIDEN, pure economic genius!
“ The softer-than expected print is a sign that the Federal Reserve’s historic interest rate hikes are putting pressure on consumers and the economy. Investors have been closely watching economic data releases for clues on when the central bank will begin to lower rates.”
Operative paragraph. The statistics are being manipulated to give the green light to the Fed to lower interest rates. Translation: Biden needs a bump for Nov.
“When the inflation exceeds the growth, we call that a recession.....”
Even though it’s not.
How bad did they cook the books to get it positive?
What part grew? Government spending! We are now printing 1T USD every month instead of every 90 days. Yea, all the economic stimulation and soon we’ll need a 1T a month just for interest to service the debt. That will keep NYC going no doubt.
We have been in Recession for all but 4 quarters since 2007.
And the big miss on durable goods orders does not suggest it’s going to get better.
Predictions for low GDP growth this year have been going on for a while. The sugar high from Covid spending is ending, and retail is gasping for breath since the re-start of student loan payments.
The “soft landing” trope is going to go the way of the dodo bird this summer.
Economists surveyed by Bloomberg estimated the US economy grew at an annualized pace of 2.5% during the period.another failed model. None of my airplane models in my youth actually flew..............
Economists are mostly Democrats. They plugged the huge government spending into their models that say huge government spending stimulates the economy.
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