Softer overall demand and inflation in the first quarter should be more of a relief for the Federal Reserve and the market rather than a concern. Most of the downward revision to gross domestic product data released by the Commerce Department on Thursday came from consumer spending, partly because of ... READ MORE >
U.S. gross domestic product
GDP growth slows to 1.6% in first quarter, exaggerated by volatile trade and inventory data
Overall growth in U.S. gross domestic product fell to 1.6% in the first quarter, but the slowdown was exaggerated by volatile trade and inventory data, which provided a 1.2% drag on overall activity. Final sales to domestic purchasers, by contrast, which exclude inventories and trade, increased by ... READ MORE >
Full employment, low inflation and a virtuous cycle in the American economy
Until recently, the idea that economy could simultaneously have low levels of unemployment and low inflation seemed to be a fantasy. Conventional wisdom, after all, holds that when unemployment is low, businesses need to pay higher wages to attract workers, which pushes up the cost of goods and services, ... READ MORE >
U.S. economy booms at a 3.3% pace in the fourth quarter
The U.S. economy expanded at a robust 3.1% pace from a year ago and closed the year with a booming 3.3% rate of expansion on the quarter, according to Commerce Department data released Thursday. The strong gains were driven by household consumption, gross private investment and government spending ... READ MORE >
U.S. income and spending see strong gains as year nears an end
This past year was a remarkable one in the American economy as inflation eased, employment gains remained rock solid and household consumption advanced at a robust pace. November’s personal income and spending report, released by the Commerce Department on Friday, showed a 0.4% monthly increase in ... READ MORE >
Industrial production posts biggest drop this year amid strikes
Industrial production dropped by more than expected in October as the United Auto Workers strike was felt in the economy. Production of motor vehicle parts fell by 10%, marking the biggest drop since the beginning of the pandemic. The industrial production index declined by 0.6% on the month, according ... READ MORE >
Resilient U.S. economy grows 4.9% in third quarter
Despite a bevy of headwinds, a resilient U.S. economy in the third quarter expanded at a 4.9% rate on a seasonally adjusted annualized basis and at a 2.9% rate on a year-ago basis. The top-line rise in GDP was turbocharged by strong increases in household spending, inventory building and gross ... READ MORE >
Resilience defined as American economy continues to defy expectations
Looking for a working definition of resilience? Take a look at the American economy, which expanded at a 2.4% seasonally adjusted annualized rate in the second quarter (2.6% on a year-ago basis). Driving that growth was a durable American household, which boosted consumption by 1.6% between ... READ MORE >
U.S. economy was a lot stronger in first quarter, final GDP estimate shows
The U.S. economy was stronger in the first quarter than previous estimates indicated, the Bureau of Economic Analysis reported on Thursday. The third and final estimate of gross domestic product showed a drastic upward revision to a 2.0% gain from 1.3% on a quarterly and annualized basis. The increase ... READ MORE >
U.S. growth slows to 1.1% as businesses pull back
Growth in the first quarter expanded at a 1.1% annualized pace and by 1.6% on a year-ago basis as a modest inventory correction—a net drag of 2.26%—and a large pullback in business investment—a net drag of 2.34%—offset the robust 3.7% increase in overall household consumption. This data, ... READ MORE >