Posted on 02/28/2018 9:35:09 AM PST by SeekAndFind
U.S. economic growth slowed slightly more than initially thought in the fourth quarter as the strongest pace of consumer spending in three years drew in imports and depleted inventories.
Gross domestic product expanded at a 2.5 percent annual rate in the final three months of 2017, instead of the previously reported 2.6 percent pace, the Commerce Department said in its second GDP estimate on Wednesday. That was a deceleration from the third quarter's brisk 3.2 percent pace.
The downward revision to the fourth-quarter GDP growth estimate largely reflected a smaller inventory build than previously reported. It was in line with economists' expectations.
The economy appears to have lost further momentum at the start of the year, with recent data showing retail sales, home sales, durable goods orders and industrial production declining in January. In addition, the goods trade deficit widened last month as exports fell.
First-quarter growth tends to be weak because of a seasonal quirk but is likely to accelerate for the rest of 2018 as the stimulus from a $1.5 trillion tax cut package and increased government spending kicks in. GDP growth estimates for the first three months of the year are as low as a 1.8 percent rate.
Economists believe the economy will hit the Trump administration's 3 percent annual growth target this year, possibly putting pressure on the Federal Reserve to raise interest rates a bit more aggressively than currently anticipated.
(Excerpt) Read more at cnbc.com ...
Could this be fake news?
RE: Could this be fake news?
If so, the government is giving us fake news.
One of these days I'm going to invent the concept of "seasonal adjustment".
Republican in the White House = estimates revised downward, as opposed to the opposite for Dims...
RE: Could this be fake news?
If so, the government is giving us fake news.
And your point?
another estimate.
Will probably revise it in a day or two.
But companies failed to produce enough to meet the burst in consumer spending, resulting in a surge in imports that subtracted from GDP growth.
Imports grew at an upwardly revised 14 percent pace instead of the previously reported 13.9 percent rate. That was the fastest pace since the third quarter of 2010 and offset a rise in exports that is being driven by weakness in the dollar.
The fed runs this country. All they have to do to destroy any administration is to jump the interest rates some 3 per cent or more.
That will result in the biggest payout in the government budget, which will be the interest on the debt.
At that time things will get very interesting.
Slower growth in the first quarter due to a lull after Christmas. What a bunch of dunderheads.
Economists believe the economy will hit the Trump administration’s 3 percent annual growth target this year, possibly putting pressure on the Federal Reserve to raise interest rates a bit more aggressively than currently anticipated.
...
The Federal Reserve obviously can’t stand prosperity.
The fed runs this country. All they have to do to destroy any administration is to jump the interest rates some 3 per cent or more.
...
They have the power to create recessions, and they don’t like the average American worker getting a pay raise.
Trump better be careful. They may try to cause a recession as he’s running for reelection.
Uh-oh... trouble ahead. Get ready for the terrible 2’s (as in 2% growth) to return.
It has nothing to do with Trump either. There are fundamental problems in our economy caused by government and other factors that cannot be explained or “goosed” by tax cuts. We are slowing down and we will not see anything close to 5%, 4%, or 3% again barring a new technological revolution or a new baby boom.
JFK tried to put an end to the fed. We all know what happened to him.
OK, well these numbers ARE very often adjusted downwards. 0.01 of a percent isn’t bad.
Well the CNBC mandate is the pump the markets to sucker the dumb money, so I think they would not be normally inclined to report anything negative about the economy.
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