Economic growth plummeted to a dismal 0.1% in the first quarter of 2104. They’re blaming it on the weather.
The economy’s growth slowed to a barely discernible 0.1 percent annual rate in the January-March quarter, the Commerce Department said Wednesday. That was the weakest pace since the end of 2012 and was down from a 2.6 percent growth rate in the October-December quarter.
Consumer spending grew at a 3 percent rate. But that gain was dominated by a 4.4 percent rise in spending on services, reflecting higher utility bills. Spending on goods barely rose. Also dampening growth were a drop in business investment, a rise in the trade deficit and a fall in housing construction.
The scant 0.1 percent increase in the gross domestic product, the country’s total output of goods and services, was well below the 1.1 percent rise economists had been predicting. The last time the quarterly growth rate was so slow was in the final three months of 2012, when it was also 0.1 percent. (Read More)
Oh well, don’t worry. The economists who predicted a 1.1% rise assure us that a strong rebound is just around the corner.
Update: Here’s Rick Santelli reacting to this news. ““>Holy Cow! Let’s look at this twice. Up one tenth. Up one tenth of one percent on GDP.”