The U.S. economy grew at an annual rate of 3.2 percent in the first three months of the year, according to a report released by the Commerce Department on Friday. The gloom and doom experts expected a 2.5-percent growth rate. The catalyst for growth was “higher exports and inventory investment.”
The Wall Street Journal explains the rate of exports rose to 3.7% and there was an increase in state and local government spending. In addition, there was a higher inventory investment. Spending by consumers and businesses was slower.
The report showed the U.S. economy could handle the partial U.S. government shutdown, uncertainty over trade policy with China and slowing global growth. It’s the strongest first quarter rate of growth in four years.
Net exports made the difference and contributed 1.03 percent to overall growth.
Disposable income rose $116 billion, or 3 percent, in the first quarter. Overall prices 0.8 percent. It smashed expectations as WaPo reported, but don’t be happy, WaPo says it was driven by factors that won’t last. Every month, they predict doom. NY Times’ Paul Krugman said Trump would destroy the economy -push it into recession. WaPo says experts predict it will eventually sink to two percent, closer to Obama’s economy. They are intent on talking it down.
We’re not worried, Trump will wave the magic wand again.
Usually, the first quarter is the weakest so this is great news.