Posted on 04/28/2011 5:58:06 AM PDT by Free Vulcan
WASHINGTON (MarketWatch) — The U.S. economy slowed markedly in the first quarter and inflation accelerated, clear evidence of the double whammy on the economy from higher gasoline prices.
In its first estimate Thursday, the Commerce Department said gross domestic product rose at a 1.8% annual rate between January and March, slower than the 3.1% pace in the prior three months.
Economists polled by MarketWatch had expected a slightly weaker 1.7% growth rate. They blamed the slowdown on weather disruptions and higher gasoline prices, as well as a drop in defense spending. See our economic calendar with forecasts of major indicators.
One of the big stories of the first quarter was weaker consumer spending. There was also a dramatic decrease in government spending and businesses slowed investments. The trade sector was also a slight drag on growth after boosting output in the fourth quarter.
If inventories are excluded, there was even a more dramatic slowdown. Final sales rose at a 0.8% rate in the first quarter after rising 6.7% in the fourth quarter.
(Excerpt) Read more at marketwatch.com ...
wow. Stick a fork in Obamanomics. The trillions in spending to inflate the dying economy did nothing except leave us in a worse position.
Anyone want to give the Over/Under on how many times the word UNEXPECTEDLY is used by the Media/Obama administration regarding slowing economic growth???
Unexpected Thursday...
oh, and notice how the media has already shifted expectations. An hour ago, they were reporting a slow 2.0% rate. When it came out as an even worse 1.8%, the article has now stated it ‘beat’ expectations of a 1.7% rate. Media malpractice.
I believe the term is “Stagflation.” It was an economic policy embraced by the Carter administration.
Funny how we never used to have weather in the old days.
Obummerville Recession.
Hammer him with it from now until election 2012.
Still, many economists maintain the view that growth will accelerate as the year progresses, particularly if the spike in oil unwinds. They point to a resurgent manufacturing sector and a slowly improving labor market that’s putting more people back to work — and putting more cash into the economy
Slowly improving labor market? Growth will accelerate as the year progresses? These are the same statements used for the past couple of years, yet the economy and employment remain terrible. Now adding real life inflation to the mix, people are going to be even poorer as the year progresses.
“Economists polled by MarketWatch had expected a slightly weaker 1.7% growth rate”
BS! The “Economist” have been touting that first quarter growth was going easily 3%.
“Funny how we never used to have weather in the old days.”
It must be because of GLOBULL WARMING ! (sarc)
Seriously though, a lot of the lumber yards , truss plants, etc. in the country have been complaining about weather affecting jobsites and new construction over the last quarter. They were still getting snow in MN/WI just recently. Plus the rain all over the southeast and south central US has affected jobsite activity.
They are positioning to blame it on Bush, The Greedy Rich, and Big Oil.
But it has kept the Ponzi going for two years.
Not looking good? It IS horrible. Anyone who is breathing does not need the media to tell them any of this, in fact the media, in trying to protect Obama is way behind eight ball.
Stagflation was a word invented to cover up the fact that economic growth doesn't cause inflation. The Federal Reserve still contends that inflation is caused by economic growth and wage increases.
Bad economic policy is embraced by the elites of both parties, not just Carter.
-——There was also a dramatic decrease in government spending -——
Does anyone believe that?
Obama’s fault?
In the face of very bad news, the stock markets are hanging near their recent highs. Why are stocks doing well in this environment?
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