I can’t figure why anyone would think the economy is in any sort of recovery mode. Everything Wile E. Obama and the ACME Economic Destruction Co has done, and will do, is designed to crush economic growth. From the hugely wasteful stimulus bill, Obamacare, “green” energy projects, and the EPA’s war on fossil fuels are just a sampling of the fail this administration’s dishing out.
The economics expert they quote here says this is “rare.” Really? How many times in the last two years have GDP growth estimates been revised downward from their initial reports? I think it’s more than a couple, but I’ll have to check on that.
The key sentence is the last one in this snippet: “estimates point to more of the same.”
Gross domestic product — the broadest measure of economic activity — rose at a mere 1.8% annual pace between January and March, marking a sharp downward revision from the 2.4% pace reported by the Commerce Department last month.
The government revises its GDP figures several times, but economists weren’t expecting such a dramatic change from the third estimate.”This was certainly unexpected and, I believe, rare,” said Jennifer Lee, senior economist with BMO Capital Markets, referring to the revision.
The weaker figures came primarily from revisions to consumer spending, exports and commercial real estate. Consumer spending, which alone accounts for roughly two-thirds of the GDP measure, rose at a 2.6% annualized pace in the first quarter, according to the revisions. That’s down from the 3.4% pace the Commerce Department estimated in its prior report.
Meanwhile, spending on nonresidential buildings shrunk 8.3% in the first quarter, offsetting some of the economic boost from the ongoing housing recovery.U.S. exports to other countries contracted, and government spending cuts continued to be the largest drag on economic growth.
Economists have already turned their attention to studying how the economy fared in the spring. Their estimates point to more of the same slow growth.