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I have to admit this news shocked me after lukewarm jobs reports in January and February.
The Commerce Department announced this morning the economy grew at a 3.2% rate in the first quarter due to “higher exports and inventory investment.” Economists predicted a 2.5% GDP.
Quarter - Time - Quarter - % - Worries
The first quarter is generally the weakest. This is the first time the first quarter topped 3% since 2015. It comes after worries that the government shutdown in December and January would affect growth.
From The Wall Street Journal:
Gross - Product—the - Value - Goods - Services
Gross domestic product—the value of all goods and services produced in the U.S., adjusted for inflation—rose at an annual rate of 3.2% from January through March, the Commerce Department said Friday. Economists surveyed by The Wall Street Journal expected a 2.5% reading.
The stronger-than-expected growth rate was boosted by a sharp pickup in the rate of exports, which rose 3.7%, a jump in state and local government spending and higher private inventory investment. Those gains were partially offset by a slower rate of spending by consumers and businesses.
Report - US - Economy - Challenges - US
The report showed the U.S. economy defied challenges including a partial U.S. government shutdown, uncertainty over trade policy with China and slowing global growth to produce the strongest rate of growth for the January to March period in four years. Compared with the first quarter a year ago, the economy grew 3.2%.
Other good news: “Disposable income rose $116 billion, or 3 percent, in the first quarter.” More money in our pockets! You know who stimulates growth and the economy? Consumers. With money in our wallets we can spend more, which helps businesses grow.
President - Donald - Trump - Tariffs - Exports
I complained when President Donald Trump placed tariffs on our exports, but three quarters have passed and the numbers don’t lie. Maybe the tariffs aren’t hurting us as much as we thought.
I say this because the “shrinking trade gap” boosted the GDP....
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