U.S. Economy Speeds Up, but Less Than Forecast

[alp227]

Source: NYT

The American economy sped up in the first quarter of this year, with output expanding at an annualized pace of 2.5 percent, according to a Commerce Department report released Friday.

But economists were not terribly excited, and not only because the number came in below their forecasts of around 3 percent.

While faster growth of any kind is welcome, much of the acceleration in gross domestic product was probably the result of unusually slow growth at the end of 2012, when the economy grew at an annualized pace of just 0.4 percent. Growth in the fourth quarter had been dragged down by smaller restocking of businesses’ inventories, for example, and in the first quarter businesses made up for this by adding much more to their backroom shelves.

Read more: http://www.nytimes.com/2013/04/27/business/economy/us-economy-grew-at-2-5-rate-in-first-quarter.html

[DallasNE]

1. Another Report Showing Drag Caused By Reduced Government Spending

This is actually my comment that includes highlights from that report as well as a link to the report. It covers things from a little different angle than the NYT.

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=2760181

[bossy22]

2. Not surprising one bit

Macroeconomics is quite easy to understand

GDP = private consumption + gross investment + government spending + (exports ? imports)

With this in mind, how anyone can argue that large reductions in government spending will grow GDP is in mind boggling- especially knowing the state of the U.S. Consumer.

[hughee99]

3. Didn't I just read an article the other day that they are recalculating the way

they figure out GDP and it should result in an additional 3% growth (over the old system)? Is this using the new system or the old?

http://www.democraticunderground.com/?com=view_post&forum=1014&pid=462198

[DallasNE]

5. I'm Sure This Is The Old Forumla

Because they will recalculate prior periods when they switch over so comparisons can be made on the same basis. There will be other ripple effects as well.

[sendero]

4. 4+ years straight..

... the economy has been "growing" but "growing less than forecast".

Could that be because the "economists" providing these "forecasts" are "idiots".

I say yes.

There is nothing, nothing nothing happening to break us out of this cycle of low employment low growth. Nothing. All the wishful forecasts by morons will not change a thing.

[fasttense]

6. Happy Days Are Here Again

So, does that mean the tens of millions unemployed get jobs? Does that mean our 30 year stagnant wages are rising again? Does that mean foreclosure are finished? Does that mean historically high bankruptcy are ending? Does it mean all the bushvilles and obamavilles are disappearing and all the millions of homeless people get homes? Does that mean all the poor hungry American children and elderly get 3 square meals a day without having to beg, borrow or steal?

Or does it merely mean the rich continue to do well at the expenses of all of us?