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U.S. Economy Sputters in Q1

U.S. Economy Sputters in Q1

The economy had grown by 1.4 percent, 2 percent and 3.9 percent in the previous three quarters.

Despite Slowest Growth Rate in Two Years, Some Good News to Report

BY DENNIS DOMRZALSKI

The U.S. Economy grew by a measly 0.5 percent in the first quarter of 2016, the slowest growth rate in two years, and down from the 1.4 percent growth rate in the fourth quarter of 2015.

The gross domestic product grew at an annualized rate of $18.22 trillion, up from $18.16 trillion in the fourth quarter of 2015, the U.S. Bureau of Economic Analysis said Thursday.

“The deceleration in real GDP in the first quarter reflected a larger decrease in nonresidential fixed investment, a deceleration in personal consumption expenditures, a downturn in federal government spending, an upturn in imports, and larger decreases in private inventory investment and in exports that were partly offset by an upturn in state and local government spending and an acceleration in residential fixed investment,” the BEA said.

The economy had grown by 1.4 percent, 2 percent and 3.9 percent in the previous three quarters.

There was some good news in the BEA’s report.

Current-dollar personal income increased by $130.8 billion in the first quarter, compared with an increase of $117.4 billion in the fourth quarter, and the personal savings rate grew to 5.2 percent, up from 5 percent in the fourth quarter.

Percentage growth of U.S. GDP Since 2013

 

2013

  • Q1: +1.9
  • Q2: +1.1
  • Q3: +3.0
  • Q4:+3.8

 

2014

  • Q1: -0.9
  • Q2: +4.6
  • Q3: +4.3
  • Q4: +2.1

 

2015

  • Q1: +0.6
  • Q2: +3.9
  • Q3: +2.0
  • Q4: +1.4

 

2016

  • Q1: +0.5
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Dennis Domrzalski is managing editor of ABQ Free Press. Reach him at dennis@freeabq.com.

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Lex Voytek is a nervous wreck and reading quiets the noise. Reach her at books@freeabq.com.