We have a combination of further, and generally not positive, analysis of the disappointing first quarter GDP growth report (1.3%).
Consider that personal consumption expenditures, the strongest item in the report, grew at a 3.8% rate, but that was still a decline from the previous quarter’s 4.2% level. Now add in the fact that spending isn’t sustainable at this level because consumers are spending beyond their means. Consumer savings was a negative 1%, and that despite $50 billion of bonuses falling in the first quarter.
In addition, MarketWatch tells us April is looking no better: “The sluggish growth in the U.S. economy likely persisted into April, economists said ahead of a busy week on the data calendar….”
