The Takeaway
The first-quarter performance upset expectations for a Trump bump at the start of 2017.
Modest as the headline number looked, it did not come as a surprise to Wall Street — before the report, Wall Street had been looking for growth to come in at 0.9 percent. What is more, many experts said the data was skewed by seasonal factors, like unusually warm temperatures in many parts of the country in January and February.
The economy’s weakness reflected new caution among consumers. Other sectors like housing and business investment turned in a stronger showing, but not enough to offset factors like weaker retail sales.
Friday’s lousy GDP Report Actually Had Some Really Good News for the Trump Economy
- GDP for the first quarter grew just 0.7 percent, worse than Wall Street economists’ expectations.
- Business investment, however, jumped 9.4 percent, the most in years.
- Economist Joseph LaVorgna said the investment data showed “animal spirits” rising in business.
