Economists throw cold water on Trump's boast about economic growth

[Roland99]

1. MarketWatch kicking in some info....

GDP ‘stomped’ estimates, but some factors appear unsustainable, economists say
https://www.marketwatch.com/story/gdp-stomped-estimates-but-some-factors-appear-unsustainable-economists-say-2019-04-26?mod=mw_theo_homepage

“GDP stomped estimates, coming in at 3.2%, but the first quarter report was marked by unusual data that inflated it temporarily — mainly short-term boosts from higher inventories and from trade (which added one percentage point alone). If you factor out those one-offs, you get GDP rising at just 1.3%, as measured by ‘final sales to private domestic purchasers.’” — Robert Frick, Navy Federal Credit Union.

...

• “On the price side, both the GDP deflator and core PCE price index were a little below expectations, still indicating that despite solid growth there is little in the way of inflationary pressure. However, even with that these strong growth numbers certainly don’t justify current market pricing for a possible cut by the Fed, and as such today’s release should be positive for the US$ and negative for fixed income.” — Andrew Grantham, CIBC Economics.

• “Not as good as it looks. While the headline figure was stronger than expected, “strength” was due to faster inventories (an unsustainable pace) and net exports (a narrower trade deficit as trade policy shifted imports ahead).” — Scott Brown, Raymond James & Associates.