Staff Reports
Well, butter my biscuit! The U.S. economy didn’t exactly knock it out of the park in the first three months of the year. According to the government, the economy only grew at a measly 1.6 percent annual rate. That’s like getting stuck behind a slowpoke on the highway when you’re already running late – frustrating!
Now, those smarty-pants economists had been crossing their fingers for a 2.5 percent growth rate, but it looks like they missed the mark by a country mile. And it gets worse – in the fourth quarter of 2023, the economy was strutting its stuff with a 3.4 percent annual pace. So, what happened, economy? Did you forget to set your alarm clock?
US economy cools as GDP growth hits lowest level since 2022 , inflation remains sticky to send Dow spiraling https://t.co/Acrfn05PTI pic.twitter.com/nS3Oumh07K
— New York Post (@nypost) April 25, 2024
Consumer spending didn’t exactly set the world on fire either. Folks tightened their purse strings when it came to buying goods, with spending on durable goods actually taking a dip at a 1.2 percent annual pace. That’s like saying, “I’ll pass on that new toaster, thank you very much.” However, spending on services did manage to pick up the slack and rose by four percent. Overall spending just barely inched up at a 2.5 percent rate, which is lower than expected. It’s like the economy is on a diet, cutting back on its consumption.
But hold onto your hats, folks, because here comes the kicker – inflation did the cha-cha and accelerated at a 3.4 percent pace in the first quarter. That’s nearly double the increase in the prior three-month period. Yikes! It’s like going to the store and finding out that the price of your favorite cereal has gone through the roof.
On the bright side, domestic economic demand put on its big boy pants and showed some muscle, softening the blow of the lackluster growth figures. Sales to private domestic purchasers still managed to rise at a 3.1 percent rate, which ain’t too shabby.
So, there you have it, folks – the U.S. economy didn’t exactly hit a home run in the first quarter. But hey, at least business fixed investment was up at a 2.9 percent annual rate. It’s like the economy saying, “I may not have aced the test, but hey, at least I showed up!”
