Author Topic: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1  (Read 470 times)

0 Members and 1 Guest are viewing this topic.

Offline Carling

  • Hero Member
  • ****
  • Posts: 4,245
US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« on: April 30, 2014, 11:27:41 AM »
http://www.breitbart.com/system/wire/ap_539fd37ff23f4f9383512e31c8dd8f16

Quote
WASHINGTON (AP) — The U.S. economy slowed drastically in the first three months of the year as a harsh winter exacted a toll on business activity. The slowdown, while worse than expected, is likely to be temporary as growth rebounds with warmer weather.
Growth slowed to a barely discernible 0.1 percent annual rate in the January-March quarter, the Commerce Department said Wednesday. That was the weakest pace since the end of 2012 and was down from a 2.6 percent rate in the previous quarter.

Many economists said the government's first estimate of growth in the January-March quarter was skewed by weak figures early in the quarter. They noted that several sectors — from retail sales to manufacturing output — rebounded in March. That strength should provide momentum for the rest of the year.

And on Friday, economists expect the government to report a solid 200,000-plus job gain for April.
"While quarter one was weak, many measures of sentiment and output improved in March and April, suggesting that the quarter ended better than it began," said Dan Greenhaus, chief investment strategist at global financial services firm BTIG.

Still, the anemic growth last quarter is surely a topic for discussion at the Federal Reserve's latest policy meeting, which ends Wednesday afternoon. No major changes are expected in a statement the Fed will release. But it will likely announce a fourth reduction in its monthly bond purchases because of the gains the economy has been making. The Fed's bond purchases have been intended to keep long-term loan rates low.
In its report Wednesday, the government said consumer spending grew at a 3 percent annual rate last quarter. But that gain was dominated by a 4.4 percent rise in spending on services, reflecting higher utility bills. Spending on goods barely rose. Also dampening growth were a drop in business investment, a rise in the trade deficit and a fall in housing construction.

The scant 0.1 percent growth rate in the gross domestic product, the country's total output of goods and services, was well below the 1.1 percent rise economists had predicted. The last time a quarterly growth rate was so slow was in the final three months of 2012, when it was also 0.1 percent.

Ian Shepherdson, chief economist at Pantheon Marcroeconomics, said he expects the economy's growth to rebound to a 3 percent annual rate in the current April-June quarter. Other economists have made similar forecasts.

A variety of factors held back first-quarter growth. Business investment fell at a 2.1 percent rate, with spending on equipment plunging at a 5.5 percent annual rate. Residential construction fell at a 5.7 percent rate. Housing was hit by winter weather and by other factors such as higher home prices and a shortage of available houses.

A widening of the trade deficit, thanks to a sharp fall in exports, shaved growth by 0.8 percentage point in the first quarter. Businesses also slowed their restocking, with a slowdown in inventory rebuilding reducing growth by nearly 0.6 percentage point.
Also holding back growth: A cutback in spending by state and local governments. That pullback offset a rebound in federal activity after the 16-day partial government shutdown last year.

Economists say most of the factors that held back growth in the first quarter have already begun to reverse. Most expect a strong rebound in growth in the April-June quarter.

Analysts say the stronger growth will endure through the rest of the year as the economy derives help from improved job growth, rising consumer spending and a rebound in business investment.
In fact, many analysts believe 2014 will be the year the reco
very from the Great Recession finally achieves the robust growth that's needed to accelerate hiring and reduce still-high unemployment. Many analysts think annual economic growth will remain around 3 percent for the rest of the year.

If that proves accurate, the economy will have produced the fastest annual expansion in the gross domestic product, the broadest gauge of the economy's health, in nine years. The last time growth was so strong was in 2005, when GDP grew 3.4 percent, two years before the nation fell into the worst recession since the 1930s.

A group of economists surveyed this month by The Associated Press said they expected unemployment to fall to 6.2 percent by the end of this year from 6.7 percent in March.

One reason for the optimism is that a drag on growth last year from higher taxes and deep federal spending cuts has been diminishing. A congressional budget truce has also lifted any imminent threat of another government shutdown. As a result, businesses may find it easier to commit to investments to modernize and expand production facilities and boost hiring.

State and local governments, which have benefited from a rebound in tax revenue, are hiring again as well.

Joel Naroff, chief economist at Naroff Economic Advisors, said he expects job growth to average above 200,000 a month for the rest of the year — starting with the April jobs report, which will be released Friday.

"Those are the types of job gains which will generate incomes and consumer confidence going forward," Naroff said.
Trump has created a cult and looks more and more like Hitler every day.
-----------------------------------------------

Online DCPatriot

  • Hero Member
  • ****
  • Posts: 31,485
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #1 on: April 30, 2014, 11:29:07 AM »
Hmmmmmm......knew it wasn't my imagination!       :whistle:
"It aint what you don't know that kills you.  It's what you know that aint so!" ...Theodore Sturgeon

"I am responsible for what I say.  I am not responsible for what you understand."  ...me

Offline alicewonders

  • Hero Member
  • ****
  • Posts: 13,053
  • Live life-it's too short to butt heads w buttheads
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #2 on: April 30, 2014, 11:41:37 AM »
Yeah, I'm sure it was all due to the harsh winter and that the roll-out of Obamacare had nothing to do with it whatsoever. 

That damn climate-change thingy.
Don't tread on me.   8888madkitty

We told you Trump would win - bigly!

Offline katzenjammer

  • Hero Member
  • ****
  • Posts: 2,513
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #3 on: April 30, 2014, 11:47:39 AM »
To be frank, I've never seen the "weather" blamed for so much in the economy, nothing to this degree, ever.

Online DCPatriot

  • Hero Member
  • ****
  • Posts: 31,485
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #4 on: April 30, 2014, 11:55:25 AM »
The sad truth about it.....when all the pent-up pressure of business investment explodes...it will be muted by double digit interest rates on borrowing.  CASH will be king.

Any bennies the GOP wishes to get in the way of credit for a 'recovery' will be muted by the high cost of borrowing and inflation.


And to insult to injury, the DEMS and MSM will point to the GOP and say, "SEE?   You will be better off under the triangulation of a Hillary Clinton administration".

We can't win for losing...... :shrug:
"It aint what you don't know that kills you.  It's what you know that aint so!" ...Theodore Sturgeon

"I am responsible for what I say.  I am not responsible for what you understand."  ...me

Offline massadvj

  • Editorial Advisor
  • Hero Member
  • *****
  • Posts: 12,094
    • Auktion Online
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #5 on: April 30, 2014, 11:56:14 AM »
To be frank, I've never seen the "weather" blamed for so much in the economy, nothing to this degree, ever.

I guess they finally figured it's been too many years to blame Bush and have any credibility.
"She only coughs when she lies."

Offline katzenjammer

  • Hero Member
  • ****
  • Posts: 2,513
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #6 on: April 30, 2014, 11:59:07 AM »
I guess they finally figured it's been too many years to blame Bush and have any credibility.

LOL!!  There you have it!!

Offline alicewonders

  • Hero Member
  • ****
  • Posts: 13,053
  • Live life-it's too short to butt heads w buttheads
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #7 on: April 30, 2014, 12:01:54 PM »
I guess they finally figured it's been too many years to blame Bush and have any credibility.

I'm surprised they're not blaming Putin yet. 

Don't tread on me.   8888madkitty

We told you Trump would win - bigly!

Online DCPatriot

  • Hero Member
  • ****
  • Posts: 31,485
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #8 on: April 30, 2014, 12:23:03 PM »
Let's not forget, too, that all federally supplied numbers are revised 4-6 weeks later.

It's probable that it's actually NEGATIVE growth.   
"It aint what you don't know that kills you.  It's what you know that aint so!" ...Theodore Sturgeon

"I am responsible for what I say.  I am not responsible for what you understand."  ...me

Online mountaineer

  • Member
  • Hero Member
  • ****
  • Posts: 34,892
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #9 on: April 30, 2014, 03:21:32 PM »
Let's not forget, too, that all federally supplied numbers are revised 4-6 weeks later.

It's probable that it's actually NEGATIVE growth.
That's the sad truth of it.

Offline Relic

  • Hero Member
  • ****
  • Posts: 4,967
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #10 on: May 01, 2014, 09:36:26 AM »
I guess they finally figured it's been too many years to blame Bush and have any credibility.

Since when has credibility figured into anything the Obama administration says or does?

Offline Relic

  • Hero Member
  • ****
  • Posts: 4,967
Re: US ECONOMY SLOWED TO 0.1 PERCENT GROWTH RATE IN Q1
« Reply #11 on: May 01, 2014, 09:42:18 AM »
Let's not forget, too, that all federally supplied numbers are revised 4-6 weeks later.

It's probable that it's actually NEGATIVE growth.

Jobs are a problem. People who have jobs, or those comfortable on their entitlements don't see a problem. The market is growing, the 401k numbers are good, inflation is managed. I golf with people in the building trades, business owners etc. Sure, there is uncertainty to hiring and healthcare costs, but business is good, very good. I have some small jobs that need to be done around the house. My contractor is too busy for me. He told me he's taking on bigger jobs than ever.

I know what's going on, to some small extent, behind the scenes. Quantitative easing, loose money policy. But, I'm telling you what the average person is seeing. IF the GOP doesn't manage to shoot itself in the foot, and takes Congress in November, there is danger ahead. The MSM and DNC are prepared to slaughter the newly Republican controlled Congress.


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf