US economic growth rebounded in the first quarter after stalling in last year’s final three months, the Bureau of Economic Analysis reports in today’s initial GDP estimate. But while Q1’s 2.5% advance (real seasonally adjusted annual rate) is a substantial improvement over last year’s slim 0.4% rise in Q4, today’s number is still well below expectations. The leading headwind in Q1: another hefty drop in the federal government’s spending on defense. By contrast, consumer spending rose the most in two years in the first quarter, although that still wasn’t enough to boost growth to match expectations. The Capital Spectator’s average econometric nowcast, for instance, anticipated a 3.2% rise in today’s GDP release.
Daily Archives: April 26, 2013
Personal Consumption Expenditures: March 2013 Preview
Personal consumption spending in March is projected to rise 0.2% vs. the previous month in Monday’s update, based on The Capital Spectator’s average econometric forecast. That compares with a 0.7% rise previously reported for February. A consensus forecast based on a survey of economists also projects a 0.2% gain for March.