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GDP Growth Estimate Downgraded

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FIRST QUARTER ECONOMIC “EXPANSION” PEGGED AT 1.4 PERCENT …

While America obsessed over an unraveling sex scandal involving U.S. Senator Ted Cruz of Texas, there was disappointing economic news to report out of Atlanta, Georgia.

According to the Atlanta branch of the Federal Reserve, which keeps a running tab of our nation’s economic output, first quarter gross domestic product (GDP) growth is currently clocking in at 1.4 percent.  That’s down from a mid-March estimate of 1.9 percent – and well below the initial 2.7 percent prediction.

In fact that’s basically half the rate of growth previously projected …

What happened?  Fundamental economic weakness, that’s what … specifically, a bad durable goods report and some weak home sales and construction data.

Don’t believe us?  Go to the Atlanta Fed website and see for yourself …

We wrote earlier this week on stagnant consumer comfort, which has solidified our already bearish view of the national economy.  As we’ve said repeatedly, we don’t want to be “perma-bears” – but we have no recourse other than to go where the data takes us.

Also we’ve been to “rainbows and unicorns” fantasyland – and we’re sure as hell not buying what they’re selling.

GDP growth hasn’t exceeded four percent in fifteen years.  In fact it hasn’t eclipsed the three percent threshold since 2005.  The last time the economy grew at a robust rate of more than five percent?  1984.

Yikes …

America’s economy can rebound from this ongoing lethargy.  But first it must stop the perpetual incentivizing of dependency, status quo deficit spending, crony capitalism (a.k.a corporate welfare), rigged trade deals, invasive bureaucracy, reckless global interventionism, open borders and more secretive central bank “stimuli.”

Anyway, another “GDP Now” estimate will be released next Monday (March 28).

UPDATE: Well … that escalated quickly.

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