One more quarter of negative growth, and we will officially be in a recession. Nice job Dunce-o-crats...nice job.
Let me get some popcorn and enjoy reading the JPP Lefty go in full denial, or blame Putin....or Trump.
Economy Shrinks 1.4% in First Quarter, Below Expectations
It was the first negative reading for gross domestic product since the early days of the coronavirus pandemic.
The U.S. economy unexpectedly shrank 1.4% annually in the first quarter, the Commerce Department reported on Thursday, a sharp decline from the fourth quarter and below expectations that wavered between slow and negative growth.
Economists had forecast a downshift in the pace of growth from the torrid 6.9% annual rate the economy grew at in the final quarter of 2021. Consensus forecasts had put the first quarter number at about 0.6% annualized growth.
“The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased,” the report said. “Personal consumption expenditures (PCE), nonresidential fixed investment, and residential fixed investment increased.”
~ Some economists believe the possibility of a recession during the next 12 months is increasing, although most peg it at about 30% or so. Those estimates were issued before the latest reading on GDP.
“Although the U.S. economy does not appear to be on the cusp of another downturn, the probability of recession next year is not insignificant, in our view,” economists at Wells Fargo wrote on Wednesday.
“The recent surge in inflation is the underlying cause of our elevated estimate of recession probability,” they added. “The jump in consumer prices has eroded real disposable income ( “purchasing power”) in recent months. Indeed, real disposable income has declined for seven consecutive months.”
https://www.usnews.com/news/economy...rinks-1-4-in-first-quarter-below-expectations
Let me get some popcorn and enjoy reading the JPP Lefty go in full denial, or blame Putin....or Trump.
Economy Shrinks 1.4% in First Quarter, Below Expectations
It was the first negative reading for gross domestic product since the early days of the coronavirus pandemic.
The U.S. economy unexpectedly shrank 1.4% annually in the first quarter, the Commerce Department reported on Thursday, a sharp decline from the fourth quarter and below expectations that wavered between slow and negative growth.
Economists had forecast a downshift in the pace of growth from the torrid 6.9% annual rate the economy grew at in the final quarter of 2021. Consensus forecasts had put the first quarter number at about 0.6% annualized growth.
“The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased,” the report said. “Personal consumption expenditures (PCE), nonresidential fixed investment, and residential fixed investment increased.”
~ Some economists believe the possibility of a recession during the next 12 months is increasing, although most peg it at about 30% or so. Those estimates were issued before the latest reading on GDP.
“Although the U.S. economy does not appear to be on the cusp of another downturn, the probability of recession next year is not insignificant, in our view,” economists at Wells Fargo wrote on Wednesday.
“The recent surge in inflation is the underlying cause of our elevated estimate of recession probability,” they added. “The jump in consumer prices has eroded real disposable income ( “purchasing power”) in recent months. Indeed, real disposable income has declined for seven consecutive months.”
https://www.usnews.com/news/economy...rinks-1-4-in-first-quarter-below-expectations
