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GDP Growth Weak In Fourth Quarter

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CONSUMERS, BUSINESSES NOT SPENDING …

The U.S. Bureau of Economic Analysis (BEA) released its preliminary “growth” estimate for the United States economy during the fourth quarter of 2015 – a.k.a. October, November and December of last year.

Ready?

0.69.

Ouch …

That’s the weakest quarterly growth since the 0.64 percent increase reported for the first quarter of 2015.  It also dropped the current annual GDP estimate for 2015 to 2.9 percent.

Will liberal economists and central planners “blame the weather?” Oh right … 2015 was positively balmy, wasn’t it?

So what will the scapegoat be this time?  We’ll have to wait and see …

Of interest?  The key driver of “growth” during 2015 was … wait for it … health care spending (a.k.a. new Obamacare taxes).

Don’t believe us?  Take a look at this chart from our friends at Zero Hedge

(Click to enlarge)

spending growth

(Chart via)

Oh, and let’s not forget to add surging inventories and consumer price index (CPI) manipulation to the mix …

As we noted in a recent column, America’s GDP growth exceeded five percent expansion in twelve out of thirty years from 1950-1980.  In seventeen out of those years, it exceeded four percent growth.

Since then?   The economy hasn’t expanded at a five percent clip once since 1984 … and it hasn’t hit four percent growth since 2000.  Hell, GDP hasn’t even expanded at three percent or better in a decade.

Looks like the recession watch we wrote about last month is on …

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