G.D.P. Report Shows U.S. Economy Off to Slow Start in 2017

[DonViejo]

Source: New York Times


By NELSON D. SCHWARTZUPDATED 9:20 AM

The Commerce Department on Friday provided its first statistical snapshot of the American economy in the first quarter, the gross domestic product estimate.

-snip-

• The economy barely grew, expanding at an annual rate of only 0.7 percent.

• The growth was a sharp decline from the 2.1 percent annual rate recorded in the final quarter of last year. It was the weakest quarterly showing in three years.

• Consumption, the component reflecting individual spending, rose by only 0.3 percent, well below the 3.5 percent rate in the previous quarter.

Read more: https://www.nytimes.com/2017/04/28/business/economy/economy-gross-domestic-product-first-quarter.html?emc=edit_na_20170428&nl=breaking-news&nlid=57435284&ref=cta&_r=0

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The economy grew at sluggish 0.7 percent in first quarter of 2017

By Ana Swanson and Max Ehrenfreund April 28 at 8:32 AM

The U.S. economy expanded at its slowest pace in three years in the first quarter, according to government data issued Friday morning, as spending by consumers grew at a slower pace and government outlays fell.

America’s gross domestic product, a broad measure of economic growth, grew by just 0.7 percent in the first three months of the year, an estimate economists say is more likely due to measurement error than Donald Trump’s performance as president. Most economists had been expecting a lackluster growth report for the first quarter, with analysts surveyed by Reuters predicting the figure would be around 1.2 percent.

Yet the report still highlights the challenge the administration will face in meeting its target rate of 3 percent economic growth.

A rapid pace of economic expansion is crucial for Trump's broader economic agenda. He plans to aggressively reduce taxes, which could leave the federal government short trillions of dollars in revenue unless the budget is bolstered by strong economic growth.

Consumer spending still expanded in the quarter, though it grew at just 0.3 percent in the fourth quarter, the slowest pace since 2009. Reduced spending at all levels of government, as well as a strong dollar that weighed on exports and increased imports, brought down the official estimate.

more
https://www.washingtonpost.com/news/wonk/wp/2017/04/28/the-economy-grew-0-7-percent-in-trumps-first-quarter-federal-data-show/?utm_term=.6f7ca0cb9c2a&wpisrc=al_alert-COMBO-economy%252Bnation&wpmk=1

[Tom Rinaldo]

1. But the stock market is setting records expecting huge tax cuts for the rich

Last edited Fri Apr 28, 2017, 01:54 PM - Edit history (1)

So who's complaining?

[elleng]

17. It's a day to day thing,

Dow down now 21 points, way up @ word that le pen had not swept France. 'Smart money,' imo, aware of what I'll call trump depression syndrome. I'm not betting.

[BumRushDaShow]

2. Lots of winning there

[TomCADem]

11. HuffPo (Dec. 2016) - Trump Is Already Taking Credit For The Economy

So, Trump was taking credit for economic growth that took place when President Obama was President, but will blame Obama for the slowdown that is occurring when Trump is President. Alternative facts strike again!

http://www.vanityfair.com/news/2016/12/donald-trump-economy

WASHINGTON ― President-elect Donald Trump will not move into the White House for another few weeks, but that hasn’t stopped him from boasting about positive new economic data.

Writing on Twitter this week, Trump focused on recent gains in consumer confidence, holiday shopping and the value of the stock market. True to form, Trump exaggerated the numbers: Holiday shopping is expected to reach $656 billion, not $1 trillion, and consumer confidence is reaching a 13-year high, not a 15-year high.

The tweets illustrate what we already knew about Trump ― that he’s happy to hold up relatively innocuous economic data and claim that it’s proof of his greatness.

As last month’s Carrier deal showed, that quality can be a political boon. And President Barack Obama’s disdain for this kind of salesmanship may have undermined his own efforts to strengthen the economy.

[progree]

20. Great find/memory. Thanks! (eom)

[bronxiteforever]

3. GOP wins election, destroys economy, Dems have to

Repair it. Lather, rinse, repeat.

[Dopers_Greed]

7. And like Obama...

Dems get the blame for the economy being bad in the first place because they couldn't give everyone in rural America six-figure salaries.

[progree]

9. GOP complains that the Dem recovery from the GOP-caused crash is too slow and weak, and voters lap

it up and elect RepubliCONs ... (sigh)

[sinkingfeeling]

4. Let's hear it for 45!

[Astraea]

5. Does anyone else think the stock market

is overvalued? I'm always amazed at how high it is. I mean, the economy isn't in bad shape (as far as I can see, anyway), but I can't comprehend why it's so astronomically high. The NASDAQ just reached an all-time high the other day.

[rickford66]

12. They "forced" everyone into 401K's

Most of us had no other choice but to enter the Ponzi Scheme and hope to get out before the end times.

[rickford66]

14. More of my thoughts on the stock market

I was one of the first baby boomers, October 1946. Our generation grew up hearing about the Great Depression from our elders, so we had the saving incentives drummed in. Notice the Dow Jones taking it's long sustained growth starting in the early 80's. Just when 401K's were introduced and corporate pensions were on the way out. Now that I'm 70 1/2 this year, I am "forced" to start cashing in those 401K stocks. So, us boomers have stopped pouring money into the market and will start draining it in huge numbers soon. From what I have read, the generations after mine haven't had higher incomes or savings. I'm sure the market will level off in the near future. I know so many of my co-workers have only put in the minimum to get matching funds, while many of us older ones put in the max. Right now I'm back at work for a bit and am able to put extra "catch up" money into my 401K above the 15%. What a deal for now.

[Astraea]

16. My mom is lucky

her company still has a pension. But she has a 401k, too, and that took a hit with the last recession. It must be doing better now, but I wonder when the bubble will burst and how bad it will be.

[Achilleaze]

6. republican-spawned Trump Slump

indisputably.

sad.

[NewJeffCT]

8. If Trump claims credit for 2017 job creation

then, he also has to own the anemic GDP

[TomCADem]

10. How Much of the US Economy Is Based On Tourism and Travel?

And was it affected by the turmoil caused by Trump's travel bans and proposals to demand smartphone passwords from travelers?

[nikibatts]

13. This is fully Trump's quarter. And driving many immigrants underground will hurt even more.

Documented or undocumented, look around you. The malls, the stores are not nearly as full as they were a year ago. Trump is depressing the economy in several ways and it will show up even more next quarter.

[StevieM]

15. Good point. His war on immigrants cannot be good for our economy.

BTW, I am very impressed that you managed to pound out 1138 posts (and counting) in just under three months. It took me about 3 years and 9 months to reach 1000 posts.

[riversedge]

18. k for exposure.

[Yo_Mama_Been_Loggin]

19. Are we tired of winning yet?