US Economy a Long Way from Recession in Q4, GDP Grew 2.9%

The US economy increased at an annual rate of 2.9% in the fourth quarter, ahead of consensus 2.6%. The report followed a 3.2% increase in the third quarter. The report suggests the economy was resilient and held on in the fourth quarter in the face of rising interest rates, moderating consumer spending (and inflation), political uncertainty and falling sentiment. The GDP Price Deflator was up 3.5% (consensus 3.2%) following a 4.4% increase in the third quarter. The Q4 PCE Price … Continue reading “US Economy a Long Way from Recession in Q4, GDP Grew 2.9%”

Consumer Spending Helped US Economy Grow Stronger than Expected in Third Quarter

The US economy has recovered strongly in the third quarter, growing at an annualized 3.2% on quarter in Q3 2022, ahead of the second estimate and consensus 2.9%. Significantly higher than the advance estimate +2.6% and Q2 GDP of -0.6%. The report ended a two-quarter streak of negative GDP prints. The report suggests the economy was resilient held in the third quarter to rising interest rates and why the Fed continued to raise rates aggressively in the third quarter. The American … Continue reading “Consumer Spending Helped US Economy Grow Stronger than Expected in Third Quarter”

US Q3 GDP Grew 2.6% Ending a Two Quarter Streak of Negative GDP

The US economy increased at an annual rate of 2.6% in the third quarter, ahead of consensus 2.3%. The report ends a two-quarter streak of negative GDP prints. The report suggests the economy was resilient held in the third quarter to rising interest rates. Real final sales of domestic product, which excludes the change in private inventories, grew a sturdy 3.3%. The GDP Price Deflator stepped down to 4.1% (consensus 5.3%) from 9.0% in the second quarter. USA Advance Q3 … Continue reading “US Q3 GDP Grew 2.6% Ending a Two Quarter Streak of Negative GDP”

US Q2 GDP Shrank 0.9% Putting America in Recession Despite Biden Administration Denials

The US economy had the second contraction since early in the pandemic shrinking -0.9% vs +0.5% expected in the second quarter after a -1.6 percent decline in the first, confirming that a recession has already begun. A recession is defined as two consecutive negative quarters of growth. Bewilderingly the Biden Administration through the President himself and Treasury Secretary Yellen continue to deny the US is a recession and the definition is wrong. What these continual false truths has done is … Continue reading “US Q2 GDP Shrank 0.9% Putting America in Recession Despite Biden Administration Denials”

Dismal US Q1 GDP Shrank 1.4% vs +1.1% expected

The US economy had the first contraction since early in the pandemic shrining 1.4% in the first quarter after it was expected to grow 1.1%. The decline in U.S. gross domestic product was a sharp reversal from the 6.9% annual growth rate in the fourth quarter, the Commerce Department said Thursday. The drop in GDP was fueled by a widening trade deficit. Fading government stimulus spending related to the pandemic weighed on GDP. USA Advance Q1 2022 GDP highlights The … Continue reading “Dismal US Q1 GDP Shrank 1.4% vs +1.1% expected”

Fading Impacts from US Fiscal Stimulus Should See Inflation Decline in 2022 Fitch Says

Ahead of Wednesday’s FOMC Fitch Ratings said a faster-than-expected global economic recovery is boosting prices as supply chains have struggled to keep up. However slower growth, supply adjustments in bottleneck sectors, a switch back towards services consumption, and fading impacts from US fiscal stimulus should see inflation decline in 2022.

Robust US Q1 GDP 6.4 percent Growth Catalyzed By Stimulus Payments and COVID Vaccines

The US economy grew by a robust annualized 6.4 percent in the first quarter of 2021, following a 4.3 percent expansion in the previous three-month period and slightly ahead market expectations of 6.1 percent, the advance estimate showed. The bounce back comes with stimulus payments and reopening activity catalyzed by the COVID vaccines.

US Senate Pass $1.9 trillion American Rescue Stimulus Plan

President Biden’s first major legislative initiative, the $1.9 trillion ‘American Rescue Plan’ stimulus bill passed a deeply divided Senate on Saturday in a vote 50-49. Democrats pushed through a loosely termed “pandemic aid plan” that includes an extraordinary increase in safety net spending.