The Latest Economic News Continues to Look Weak

The estimate of first quarter 2024 GDP growth was revised down today, to 1.3% from an already low 1.6%.  In nominal dollars the growth appears higher, 4.3%, but inflation remains above the desired level, at 3%, so actual growth in output is much lower.  Consumer spending continues to slow, affecting inventory growth.  Imports were also higher, which has a negative impact on domestic growth.  Corporate profit growth declined as did personal income growth.  This suggests that both corporate investment and consumer spending may be limited in future months.   The economy appears sluggish, at best.  (BEA Release)

And on the labor side, while unemployment claims appear to be at an acceptable level, according to official statistics, we are still seeing large levels of layoffs, which appear to be inconsistent with the official statistics.  And all the excessive government spending in Minnesota isn’t doing squat, we had one of the highest jumps in new unemployment filings.  (ZH Post)   And as an added bonus, our productivity change is also one of the worst country, Minnesota actually went negative by 1.7% over the last year.  But why work hard when your state is determined to reward not working at all!!  (BLS Release)