Economic Growth in the First Quarter Sucked

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GDP growth was terrible in the first quarter, rising at an annual rate of only 0.7 percent. That’s the worst quarterly performance in two years:

Unfortunately, the details behind the headline number are bad too. Growth was driven almost entirely by investment in buildings, both residential and nonresidential. Personal consumption was up an anemic 0.3 percent. The most common excuse for this miserable performance is that it’s for the first quarter, and first quarters are always bad. There’s some truth to this: first quarter growth has averaged 1.0 percent since 2010. However, we’ve had a pretty mild winter in 2017, so there’s no weather excuse this year.

We’ll see. Maybe the revised numbers will be better. Maybe we’ll make up for this in the second quarter. Maybe.

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Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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