U.S. economy grows at tepid 1.2 percent; business spending softens

[DonViejo]

Source: Reuters


BUSINESS NEWS | Fri May 26, 2017 | 10:19am EDT

By Lucia Mutikani | WASHINGTON

The U.S. economy slowed less than initially thought in the first quarter, but there are signs it could struggle to rebound sharply in the second quarter amid slowing business investment and moderate consumer spending.

Gross domestic product increased at a 1.2 percent annual rate instead of the 0.7 percent pace reported last month, the Commerce Department said on Friday in its second GDP estimate for the first three months of the year.

"The second estimate paints a better picture about the degree of slowing in activity at the start of the year, but the main concern about soft growth in private consumption remains," said Michael Gapen, chief economist at Barclays in New York.

That was the worst performance since the first quarter of 2016 and followed a 2.1 percent rate of expansion in the fourth quarter. The government revised up its initial estimate of consumer spending growth, but said inventory investment was far smaller than previously reported.


Read more: http://www.reuters.com/article/us-usa-economy-idUSKBN18M1GP

[mahatmakanejeeves]

1. "... the 0.7 percent pace reported last month...."

U.S. consumer spending unchanged in March; inflation subsides

Source: Reuters

Business News | Mon May 1, 2017 | 8:44am EDT

U.S. consumer spending unchanged in March; inflation subsides

U.S. consumer spending was unchanged in March for a second straight month and the overall monthly inflation rate fell for the first time in a year, confirming the weak domestic demand in the first quarter.

But when adjusted for inflation consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3 percent, ending two straight months of decline, the Commerce Department said on Monday.

Economists polled by Reuters had forecast consumer spending, rising 0.2 percent. The data was included in last Friday's first-quarter gross domestic product report, which showed consumer spending increasing at a 0.3 percent annual rate - the slowest since the fourth quarter of 2009.

The economy grew at a 0.7 percent pace in the first quarter, the worst performance in three years. ... March's increase in real consumer spending sets it up for an acceleration in the second quarter. Consumption is likely to be supported by a pick-up in wage growth. A report on Friday showed private wages recorded their biggest increase in 10 years in the first quarter.

Read more: http://www.reuters.com/article/us-usa-economy-idUSKBN17X1P4

https://www.bea.gov/newsreleases/rels.htm

Personal Income and Outlays, March 2017 {5/1/17}
https://www.bea.gov/newsreleases/national/pi/2017/pi0317.htm

-- -- -- -- --

Today's release:

https://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EDT, Friday, May 26, 2017 BEA 17—23

Lisa S. Mataloni: [phone] (GDP) [e-mail]
Kate Pinard: [phone] (Corporate Profits) [e-mail]
Jeannine Aversa: [phone] (News Media) [e-mail]

National Income and Product Accounts
Gross Domestic Product: First Quarter 2017 (Second Estimate)
Corporate Profits: First Quarter 2017 (Preliminary Estimate)

Real gross domestic product (GDP) increased at an annual rate of 1.2 percent in the first quarter of 2017
(table 1), according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth
quarter, real GDP increased 2.1 percent.

The GDP estimate released today is based on more complete source data than were available for the
"advance" estimate issued last month. In the advance estimate, the increase in real GDP was 0.7
percent. With this second estimate for the first quarter, the general picture of economic growth remains
the same; increases in nonresidential fixed investment and in personal consumption expenditures (PCE)
were larger and the decrease in state and local government spending was smaller than previously
estimated. These revisions were partly offset by a larger decrease in private inventory investment (see
"Updates to GDP" on page 2).

[Bernardo de La Paz]

2. Slowing housing starts hit by higher lumber costs due to tarrif. Softening tourist inflow. . . nt

[Marthe48]

3. yep

trump is destroying morals, law, economy and the pukes in Congress are letting it happen. How about LIHOP? (let it happen on purpose)

[cstanleytech]

4. They are not letting him do it they are actively working together to do it with

the end goal of draining as much money and government land into their own pockets as well as the pockets of their backers.