So, April’s consumer spending went down 0.1%. In the US, consumer spending accounts for 70% of our GDP. In the first quarter of this year, our total GDP was in the negative. Now, this.
In spite of the actual news, the lunatics are still predicting a great 2nd quarter.
WASHINGTON (AP) — U.S. consumers cut back on spending in April for the first time in a year, taking an unexpected pause after a big jump during the previous month. The results, however, are unlikely to derail an expected spring rebound in the economy.
Consumer spending, which accounts for 70 percent of overall economic activity, fell 0.1 percent in April, the Commerce Department said Friday. The drop was the first in 12 months. But it followed a 1 percent surge in spending in March, which marked the biggest increase in more than four years. …..
Inflation, as measured by a gauge tied to spending, showed prices rising 1.6 percent from a year ago, up from a 1.1 percent year-over-year price gain in March. However, even with the increase, inflation remains below the Federal Reserve’s 2 percent target. ….
Friday’s data follows news the previous day that the overall economy shrank 1 percent in the January-March quarter. It was the first contraction in three years and was blamed on a number of special factors including an unusually harsh winter.
Economists estimate that further gains in hiring will boost consumer confidence and spending in the coming months, driving overall economic growth as measured by the gross domestic product. Some analysts say GDP growth could hit an annual rate of 4 percent in the second quarter and top 3 percent in the second half of this year.
With consumer spending down in April, we’re not going to get to 4% for the 2nd quarter. Apparently, our inflation gauge doesn’t include meat prices. And, yeh, essentially they’re saying winter caused our economy to contract. Propaganda in its finest form.