Q1 GDP RISES ANEMIC 1.8%

The number:

Slightly better than expectations at 1.8%, but still really anemic compared to where we have been.

The price index rose 1.9%.

Of course, yesterday Bernanke was saying that the economic weakness would be “transitory.”

The full report is here.

More bad news: Consumption is slowing down:

Real personal consumption expenditures increased 2.7 per cent in the first quarter, compared with
an increase of 4.0 per cent in the fourth.  Durable goods increased 10.6 per cent, compared with an
increase of 21.1 per cent.  Nondurable goods increased 2.1 per cent, compared with an increase of 4.1
per cent.  Services increased 1.7 per cent, compared with an increase of 1.5 per cent.

And government expenditure is plunging:

Real federal government consumption expenditures and gross investment decreased 7.9 per cent
in the first quarter, compared with a decrease of 0.3 per cent in the fourth.  National defence decreased
11.7 per cent, compared with a decrease of 2.2 per cent.  Nondefense increased 0.1 per cent, compared
with an increase of 3.7 per cent.  Real state and local government consumption expenditures and gross
investment decreased 3.3 per cent, compared with a decrease of 2.6 per cent.

Background: Everyone is expecting a very weak reading here. Consensus estimates are for 1.7%, which is well below the 3%+ where they used to be.

Even a low reading closer to 1% wouldn’t be a total shocker.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.

Tagged In

gdp moneygame-us