GDP a little soft as consumers pullback

First quarter GDP came in at the high-end of the range at 2.3%, according to a report by the Commerce Department released Friday morning.

the consensus according to the Atlanta Federal Reserve’s GDPNow projected that Q1 growth would be 2.0%.

The 2.3% represents a slowing of the economy as the US grew 2.9 percent in the prior quarter.

While in recent history Q1 has been the lowest quarter for growth, with some economists citing residual seasonal adjustments as the culprit.

“The first quarter has been persistently weak in recent years,” David Sloan, senior economist at Continuum Economics, told Bloomberg. “We expect a rebound. Tax cuts will support consumer spending and business investment,” while “trade is certainly a risk.”

Wage gains were also found in a separate Labor Department report Friday morning suggesting a tightening of the job market. While prices to consumer rose as spending decreased. Post holiday spending is usually restrained — especially when the consumer has near-record credit card debt.

 

 

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