FIRST QUARTER “GROWTH” AN ABYSMAL 0.2 PERCENT …
|| By FITSNEWS || The U.S. economy “grew” at an abysmal 0.2 percent rate in the first quarter of 2015 – a terrible number under any circumstances, but an especially horrific print in light of the unbounded optimism we were spoon fed at the beginning of the year. In fact the number was far worse than the 1.0 percent growth rate Wall Street was expecting.
According to the Bureau of Economic Analysis (BEA), economic growth for the fourth quarter of 2014 clocked in at 2.2 percent.
Revised updates will be released on May 29, according to the agency.
As bad as things are, they could have been much worse. Were it not for a surge in inventory (the largest in nearly five years), GDP would have plunged by 2.5 percent. Also while consumer spending did grow at a modest rate, as we’ve previously noted the vast majority of that growth was on higher energy costs – oh, and mandatory health care coverage.
In other words not really “consumerism” at all … which is what we’ve been saying was going to happen all along.
Courtesy of our friends at Zero Hedge, here’s what that looks like …
(Click to enlarge)
We wrote last week about a big manufacturing miss – and this week about slumping consumer confidence. And of course all this is on top of anemic job growth (and zero job growth where it really matters).
And there’s a bigger problem. The current lack of growth is part of an increasingly worsening broader downturn. America’s economy hasn’t grown at an annual rate of three percent in ten years. It hasn’t hit four percent growth in fifteen years. And it hasn’t hit five percent growth in more than thirty years.
By contrast, growth exceeded five percent in twelve out of thirty years from 1950-1980. And it exceeded four percent in seventeen out of those thirty years.
We’ve said it before, we’ll say it again: Until our leaders reverse course and engage the free market – not more wealth redistribution, crony capitalism, welfare statism and global interventionism – don’t expect anything to change. In fact expect things to get worse.
Listen to us now … hear us later.