Economy grows 3.2% in first quarter, GDP shows, much stronger than anticipated – IOTW Report

Economy grows 3.2% in first quarter, GDP shows, much stronger than anticipated

It’s the economy, stupid.

Despite Bill Maher hoping for an economic tragedy befalling ordinary Americans so that Trump can be defeated in 2020, GDP growth hit a remarkable 3.2% in the first quarter.

Market Watch-

State and local government spending boosts Q1 growth. Excluding trade and inventories, growth rose decent 2.3%

The numbers: Reports of the demise of the U.S. economy proved unfounded as first quarter activity showed surprising strength. The U.S. economy expanded at a 3.2% annual pace in the first three months of 2019, the government said Friday.

The gain was well above forecasts. Economists polled by MarketWatch had forecast a 2.3% increase in gross domestic product. The economy grew at a 2.2% rate in the final three months of 2018.

Inflation moderated a bit in the first quarter.

What happened: One unexpected factor behind the acceleration in GDP growth in the first quarter was a sharp upturn in state and local government spending.

Spending at this level jumped 3.9% after a 1.3% drop in the prior three months. This was the fastest gain in three years. Spending by local governments likely picked up due to the partial federal government shutdown.

Also fueling the stronger GDP growth were stronger inventory building and trade. These factors are volatile and could reverse this quarter.

Final sales to domestic purchasers, which excludes trade and inventory behavior, rose 2.3% in the first quarter, the smallest gain in three years, but still well above what economists were expecting.

The value of inventories, which adds to GDP, increased to $128.4 billion from $96.8 billion.

The trade sector added a little more than 1% to growth in the first quarter. Exports rose 3.7%, while imports dropped by the same amount, leading to a smaller trade deficit.

!snip!

Voters will not abandon this and run toward loons who want terrorists to vote, babies killed after they are born, open borders………..

13 Comments on Economy grows 3.2% in first quarter, GDP shows, much stronger than anticipated

  1. “One unexpected factor behind the acceleration in GDP growth in the first quarter was a sharp upturn in state and local government spending.”
    Well, it looks like the economic experts weren’t doing their job if they didn’t ask the state and local gov’ts what they were planning…
    Probably spending all their time watching CNN or MSNBC.

    5
  2. Lyft, Uber, Pintrest, etc – IPO companies that make nothing, but somehow worth billions and are publically available for everyone to lose money.
    Strong M&A activity.
    Inverted yield curve.
    Building inventories.

    These are signs the economy is starting to roll over.

    No one knows for sure, but the stars are starting to align for a 2020 slow down or maybe a recession. Bill Maher might still end up with what he’s hoping for.

    Then again, we said similar things for 2011, 2016, 2018….

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  3. Based on recent news of more foreign money coming to America to set up shop, this is only going to get better. America: The best place to invest.

    3.2% was exactly the number I predicted when the DJI stalled yesterday (on fears of Q1 reporting). How long will it take before Wall Street figures Trump out?

    2
  4. But the geniuses keep telling us if President Trump shuts down the border it will tank the economy!

    Don’t forget, the 2008 recession was started by Chuck Schumer.

    2
  5. The upside of the Dems harassing the President is they’re not harassing us, so the tax & regulate state is occupied with the current target.
    Which shouldn’t be the Presidents job, but Pelousy and her flying monkeys called the play.
    Is retribution also a dish best eaten cold?

    3
  6. Speaking at NRA now!
    Singed order shutting down any further Senate action to ratify UN arms agreement. Signed it in front of all those NRA witnesses and held it up with that big bold signature!
    Now yielding to actual people who saved lives with their legally owned weapons.

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