First quarter GDP came in at a disappointing 0.2 percent, the Commerce Department reported yesterday. The economy had expanded at a rate of 2.2 percent in the final quarter of 2014 and at 2.4 percent for the entire year.
One big reason: consumer spending, which accounts for more than two-thirds of economic output, grew at just 1.9 percent, down from 4.4 percent in the fourth quarter. Not coincidentally, the personal savings rate, 5.5 percent, was the highest it's been since 2012, up from 4.6 percent in the fourth quarter.
Harsh winter weather was also a factor, as it has been in a lot of first quarters lately. Since 2010, first-quarter gross domestic product growth has averaged just 0.6 percent; for all other quarters, it’s 2.9 percent.
No comments:
Post a Comment