Economy Round-Up

U.S. Economy Grew at 1.9% Rate in First Quarter

The good:

The U.S. economy performed a little bit better in the first three months of 2024 than first thought, growing at an annual rate of 1.9 percent. But even with the improvement, the pace of economic growth was still below normal.

And the continued not so good...

Federal Reserve Chairman Alan Greenspan, in a Capitol Hill appearance last week, predicted that economic growth in the current April-June quarter ``is going to be quite soft.''

Private economists agree. They don't think the economy will do much better than the first quarter. Forecasts for second-quarter economic growth range from a 1.8 percent rate to a rate of more than 2 percent.

Greenspan told lawmakers that the ``economy continues to be buffeted by strong cross currents.''

He said recent economic reports on employment and production have been ``on the weak side.'' But improved conditions in financial markets and strong productivity gains -- a key to the nation's long-term economic well being -- augured well for the economy's future.

And more good: Retail Sales Pace Picks Up, Hinting of Broader Rebound

Retail sales at chain stores rose last week at a faster pace than they had for most of the previous month, according to two surveys released today. In one survey, conducted by the Bank of Tokyo-Mitsubishi, sales increased 3.1 percent compared with the week a year earlier, the biggest gain since January.

And general Weirdness: Economy Picked Up Speed as 2024 Began; Jobs Scarce

Stronger consumer spending helped push U.S. growth ahead at a modestly faster rate than previously thought in the first quarter but jobs remain scarce, government reports on Thursday showed.

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