Gross domestic product fell at a 1.4 per cent annualized rate as surging imports and softer inventory growth more than offset otherwise solid consumer and business demand, the Commerce Department’s preliminary estimate showed Thursday. The print was below all but one estimate in a Bloomberg survey. The median projection was for a 1 per cent increase.
On its face, the headline GDP figure was decidedly soft. But underlying details show still-solid household demand and business investment, corroborating comments about the economy from company executives during the current string of earnings calls. “The economy is not falling into recession,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note. “Net trade has been hammered by a surge in imports, especially of consumer goods, as wholesalers and retailers have sought to rebuild inventory.”Article content
Looking forward, rapid inflation and dwindling fiscal support point to more moderate growth in outlays for the remainder of the year. Furthermore, higher interest rates may at some point prompt companies to trim capital expenditures budgets.
Looking backwards will tell us nothing of todays reality
Markets are roaring higher on the bad news because the FED will have to delay raising interest rates and QT. Lol!
• The US GDP in Q1-2022 decreased -1.4% in an annual rate compared with the previous quarter Q4-2021 • BUT, it increased 3.6% compared with the same quarter a year ago (Q1-2021) • AND it is 2.8% larger than the GDP of Q4-2019, largest GDP before the pandemic
Let’s go Brandon
Surprise ? Have you seen the leader of the free word ?
Why is it a surprise when Shanghai has been under a draconian lockdown for more than a week and people there are starving to death?
Surprise? Anyone with half a clue expected this
Surprise to WHO exactly? We are already in a recession. Are the media and politicians just going to keep pretending we aren't? It is becoming apparent, that yes, yes they are just going to keep shoveling this $!+ down our throats, even if it's becoming farcical.
Surprise? Only if you don't follow the news
'surprise'
Trump was right again.
'surprise'
Its as surprising as the BoC underestimating inflation and calling it transitory. Biden is driving their economy off a cliff.
Lets go Brandon!