GDP!!! Unexpectedly it moved, step-by-step, lower and lower …..
Have you ever noticed how much of the media employs the word “unexpectedly” in regards to the economy? When there is a Republican in the White House the word is used when the economy improves beyond projections as happened soon after the COVID lockdown in June 2020 when the Financial TimesAccording to reports, the US unemployment rate fell unexpectedly at 13.3%
But, with a Democratic administration, this term describes what happens to economic conditions when they get worse. For example, Thursday’s report that the U.S. Gross Domestic Product contracted at an annualized 1.4% rate for the first quarter 2022. In the end, we are “unexpectedly” bursting out in media like at Yahoo! Yahoo! FinanceAccording to the report, “US GDP unexpectedly fell at an annualized 1.4% rate in Q1”.
In the three first months of 2022, U.S. Economic Activity unexpectedly fell for the first-time since 2020’s second quarter. There were lingering supply chains constraints, inflation and disruptions from Russia’s War in Ukraine that weighed on growth.
At 8:30 AM Thursday, the Bureau of Economic Analysis (BEA), released an initial estimate of U.S. Gross Domestic Product (GDP), for the first quarter of 2014. ET. These are the key metrics in the report, as compared with the consensus data from Bloomberg.
GDP annualized, quarter-over-quarter: -1.4% vs. 1.0% expected, 6.9% in Q4
Unexpectedly, also appeared on the Economist In their sad article, “America’s economy unexpectedly contracts in the first quarter”:
American economies are contracting. On April 28, data showed a 1.4% decline in production in annualized terms. This is compared to the growth of almost 7% last year. This is misleading as it is more indicative of high imports and changing inventory levels rather than a sudden slowdown. Underlying demand is strong—personal consumption rose by 2.7% in the first three months of 2022—and most analysts are predicting growth for the full year.
However, even if growth is not seen for the whole year, it’s possible to expect that. EconomistThe yearly decline is a reason to use the U word again
CNN’s Chris Cillizza is one of the most amusing people to use the U-word in describing the downturn in the economy. He is currently sat shiva about the fate of Democrats in November, in “Today’s a disaster day for Democrats’ 2022 opportunities”:
Democrats are already in deep trouble due to growing concerns about the economy ahead of 2022’s midterm elections. The unexpected contraction of the US economy over the first quarter is a huge blow.
…If the economic situation remains the same, as it is today (in terms of GDP and CPI) and Americans’ views of the economy, Democrats are likely to experience an uproar at the ballot box in the fall. It won’t matter if they retain their slim majority in the Senate and House, the question will be how large the electoral gap they must try to fill over the next decade.
Cillizza seems to predict a disastrous outcome for Democrats in November.
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