Economy
Related: About this forumU.S. Economy Expands to 0.5% Pace, Weakest in Two Years
The U.S. economy expanded in the first quarter at the slowest pace in two years as American consumers reined in spending and companies tightened their belts in response to weak global financial conditions and a plunge in oil prices.
Gross domestic product rose at a 0.5 percent annualized rate after a 1.4 percent fourth-quarter advance, Commerce Department data showed Thursday. The increase was less than the 0.7 percent median projection in a Bloomberg survey and marked the third straight disappointing start to a year.
Shaky global markets and oils tumble resulted in the biggest business-investment slump in almost seven years, and household purchases climbed the least since early 2015, the data showed. While Federal Reserve officials on Wednesday acknowledged the softness, they also indicated strong hiring and income gains have the potential to reignite consumer spending and propel economic growth.
The fact that personal consumption is a bit on the soft side is a disappointment, especially in light of the low gasoline prices, said Thomas Costerg, senior economist at Standard Chartered Bank in New York, who correctly projected first-quarter growth. Consumption seems to be stuck in a low gear.
Economists projections for GDP, the value of all goods and services produced in the U.S., ranged from gains of 0.1 percent to a 1.5 percent. This is the governments first of three estimates for the quarter before annual revisions in July.
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http://www.bloomberg.com/news/articles/2016-04-28/u-s-economy-grew-in-first-quarter-at-slowest-pace-in-two-years
840high
(17,196 posts)forest444
(5,902 posts)Growth, as you know, is typically fastest in the year or two after the previous recession ends, and then starts tapering until GDP plateaus.
Unfortunately, we seem to be entering the plateau phase - and the timing couldn't be worse, given the election. As long as unemployment doesn't begin to rise, we should be fine.
Purveyor
(29,876 posts)indicator of the health of the economy.
So goes Detroit, so goes the nation...
forest444
(5,902 posts)"What's good for our country was good for General Motors, and vice versa."
Auto sales have usually been a good indicator of where the economy both is, and is heading. That's, in fact, true in most other developed/semi-developed countries as well.
Canesfan
(24 posts)I wonder the extent to which the global economy contributes to our inability to speed up growth.