Unexpected: First Quarter GDP Revised Down to 1.9%

Posted by on May 31, 2012 at 9:01 am

That Obama economic juggernaut has kinda jumped the rails, huh?

Economic growth in the United States was a bit slower than initially thought in the first quarter, the Commerce Department reported Thursday, as businesses restocked shelves at a moderate pace and government spending declined sharply.

Government spending declined sharply? Really?

Gross domestic product increased at a 1.9 percent annual rate, down from last month’s 2.2 percent estimate, the government said in its second estimate. The economy grew at a 3.0 percent rate in the fourth quarter.

The report also showed that after-tax corporate profits dropped for the first time in three years.

So why is the government and media so consistently wrong time after time?

The nation’s economy grew at a slower pace than previously reported in the first three months of this year, raising new concerns about economic weakness.

Expect more of the unexpected tomorrow.

On Friday, the government will release its much anticipated May jobs report. Analysts surveyed by CNNMoney expect that the U.S. economy added 150,000 jobs in May, including 12,000 government cuts. The unemployment rate is expected to stay at 8.1%.



Tags: , , ,

Comments are closed.