The
article discusses that usually economic growth was gaining speed at an annual
rate of 2.5% for the first quarter of every year. The department of commerce
released a statement saying that GDP had grown 2.5% in the first quarter after
growth almost stalled at 0.4% in the fourth quarter of the preceding year. However
even with the surge in GDP between quarters it still did not meet economists
expectations which were set at 3%. Much of this growth is attributed to the
increase in consumer spending, which accounts for more than two thirds of US
economic activity. Consumer spending increased at a 3.2% pace, the fastest
growth since the later part of 2010. This was a welcome increase seeing as how
the previous quarter saw only a 1.8% in growth. Also attributing to the
economic growth was a surge in people purchasing vehicles as well as more money
from utilities due to a longer and colder winter than average.
Even
though economic growth did not meet the expectations I believe that this is
little more than a slight bump in the road. Yes, we did not meet the
expectations of 3%, but it was still a significant increase from the 0.4% we
had the quarter before. Our economy is still recovering from the recession and
will take time to do so, I’m sure that we will see this happen again, but we
will make progress and we will recover.
Economy has been showing slow signs of recovery, but it has been improving. I think it might be worth looking at what quarters of the year see the highest growth, as it could tell us whether this growth is part of usual trend or a sign of an actual recovery.
ReplyDeleteWhen looking at a large economy like the U.S one can not expect smooth sailing growth. Fluctuations are common and even expected, so I don't think anyone should be worried when they se this happening.
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