US economy grew at 2.1% rate in Q4 but virus threat looms

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) — The U.S. economy grew at an annual rate of 2.1% in the final quarter of last year, but damage from the spreading coronavirus is likely depressing growth in the current quarter and for the rest of the year.

The overall pace of growth in the October-December quarter was unchanged from its initial estimate a month ago, though the components were slightly altered, the Commerce Department said Thursday. A slowdown in business restocking was less severe than first believed. But a cutback in business investment in new equipment was more of a drag on growth than initially thought.

Economists have been downgrading their forecasts for the first quarter of this year as fears of the impact of the virus has escalated. Stock markets have plunged this week on news that the number of coronavirus cases worldwide has now topped 81,000.

That decline resumed on Thursday with the Dow Jones industrial average down sharply in early trading. All major U.S. markets tumbled into correction.



In this Friday, Feb. 14, 2020 photo, a truck leaves the docks at PortMiami in Miami. On Thursday, Feb. 27, the Commerce Department issues the second estimate of how the U.S. economy performed in the fourth quarter. (AP Photo/Wilfredo Lee)


Read more: https://apnews.com/e1352e2df64c4ff1ad18c3f0b392e4d0

[John Fante]

1. I thought we were supposed to see 3-4% annual growth thanks to the

tax scam? So much for that.

[IronLionZion]

2. Blame China

or Dems since we took the house and impeached him

or blame Obama

or socialism, since the virus came out of China even though they are not even close to being socialist

[progree]

3. It's the 2020 Democrats "on that stage making fools out of themselves", according to Trump

https://news.yahoo.com/trump-blamed-2020-democrats-ongoing-162556269.html

Trump blamed 2020 Democrats for the ongoing stock-market plunge — but the nosedive was already underway due to coronavirus, Business Insider, 2/27/2020

Trump tried blaming the 2020 Democrats for the stock market plunge this week, which threatens to become the worst weekly decline since the 2008 financial crisis.

"I think the financial markets are very upset when they look at the Democratic candidates standing on that stage making fools out of themselves, when they look at the statements made... I think that has a huge effect," Trump said.

He added, "you can add quite a bit of sell-off" to fears that a Democrat will emerge as the victor in the 2020 election.

The claim is at odds with financial experts who cite escalating fears about the coronavirus's spread worldwide as the reason for the massive market drop.

https://www.marketwatch.com/story/trump-talks-about-the-stock-market-and-gets-1-out-of-3-points-right-2020-02-26

Trump talks about the stock market, and gets 1 out of 3 points right, MarketWatch, 2/26/2020

[RussBLib]

6. Obviously, the downturn is someone else's fault

While all of the upside was Trump's doing. This guy is predictably partisan. What a pathetic personality.

[sandensea]

4. "4, 5, or 6%" the Orange Oracle promised us.

The only thing that's grown 5 or 6%, is his girth (actually more).

[yaesu]

5. one final flare sent up before this titanic sinks. nt

[eilen]

7. Yeah, I remember the basement # was 4%

Another broken promise.

Although honestly, how could anyone have foreseen that throwing trade wars against everyone at the same time might affect the GDP? When even allies get the Trump Tariff panacea, we get even more sectors taking it on the chin.

[lonely bird]

8. 2%?

That’s basically inflation. So in reality we did not grow at all.