Economy picks up in 1st quarter but far less than expected

Rick Moran
Will we ever see 3% growth again? New York Times: The American economy sped up in the first quarter of this year, with output expanding at an annual pace of 2.5 percent, according to a Commerce Department report released Friday. The number was lower than the 3 percent forecasters had been expecting. While faster growth of any kind is welcome, much of the acceleration in gross domestic product was probably a result of unusually slow growth at the end of 2012, when the economy grew at an annual pace of just 0.4 percent. Growth in the fourth quarter had been dragged down by reduced restocking of businesses' inventories, for example, and in the first quarter businesses made up for this by adding much more to their shelves. Consumer spending was up too, despite fears that the lapse of the temporary payroll tax holiday at the start of the year would hold back how much consumers were willing to spend. It's unclear whether consumers will continue to spend as freely in the...(Read Full Post)

COMMENTS ON AMERICANTHINKER