WSJ.bmp

The WSJ Econ Roundup:

“The U.S. economy strengthened during the first three months of the year, but at a weaker-than-expected pace, the government said Thursday in a report that also suggested inflation rose at a faster rate.

The reading on gross domestic product for the January-to-March quarter, reported by the Commerce Department, marks a slight pickup from the 4.1% rate registered in the final quarter of 2003. While the first-quarter figure suggests that the recovery is in good shape, it fell short of the strong 5% pace that economists were forecasting. . .

The report also showed that gauges of inflation rose at a higher rate. The price index for gross domestic purchases climbed at a 3.2% rate in the first quarter; it advanced 1.3% in the fourth quarter. The government’s price index for personal consumption rose at a 3.2% rate January through March. It had risen just 1% in the fourth quarter.”

Here’s the key stat to me:

Federal government spending went up 10.1% in the first quarter, compared with a 0.7% climb in the fourth. State and local government spending fell 2.6%.

That suggest that government and military spending are still a key driver of the recovery — not typically an encouraging sign.

Source:
GDP Rose 4.2% in Quarter; Key Inflation Gauge Climbs
Consumer Spending Increases 3.8%; Initial Jobless Claims Drop by 18,000
April 29, 2004 9:10 a.m.

http://online.wsj.com/article/0,,SB108323883685597205,00.html

Category: Finance

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

Comments are closed.