The American economy remained stuck in the slow lane over the first three months of the year, expanding by a modest 0.6 percent annualized rate, the Commerce Department announced Wednesday morning.CONSUMER SPENDING GREW. EXPORTS GREW. THE ECONOMY GREW. UNEMPLOYMENT REMAINS LOW. THERE IS NO RECESSION.
The weak performance reflected the increasingly thrifty inclinations of American consumers in the face of plummeting real estate prices, tightening credit and a deteriorating job market. Economic growth was also hampered by a continued pullback in construction and business investment.
The only factors preventing the economy from sliding backward were the growth of American exports — aided by a weakening dollar — and a buildup of inventories by businesses. Exports and inventories set aside, final sales of American goods and services domestically dipped at a 0.4 percent annualized rate in inflation-adjusted terms, the first decline since the end of 1991.
Consumer spending grew at an anemic 1 percent annualized rate, down from 2.9 percent in 2007 and 3.1 percent the year before.
- TOO BAD FOR THE DEMOCRATS.
- THEY WERE WISHING FOR A RECESSION.
- NEVERTHELESS, THEIR COMRADES ION THE MSM WILL TALK DOWN THE ECONOMY BETWEEN NOW AND THE ELECTION.