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Nasty GDP Report


Tags U.S. Economy


The latest GDP report for the first quarter can be reviewed here.

GDP grew by only 1/10 of 1% in the first quarter. There were big negative reversals in both exports and equipment purchases from the 4th quarter of last year. The accumulation of inventories also was reduced, but is still accumulating rapidly indicating less of a need to add inventory in future quarters. Consumption grew at a 3% rate, but this was largely driven by a nearly 10% jump in health care spending, that was probably driven by the Affordable Care Act. The saving rate is also reported to be "unusually low." The only bright spot in the report was that government spending was down for the quarter.

Mark Thornton is a Senior Fellow at the Mises Institute and the book review editor of the Quarterly Journal of Austrian Economics. He has authored seven books and is a frequent guest on national radio shows.

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