Economic Growth Slows
First quarter economic growth was quite slow at 1.3%. This is quite low growth and the article notes it is the lowest in four years.
The first-quarter GDP figure was the weakest since a 1.2 percent pace registered in the opening quarter of 2003. GDP measures the value of all goods and services produced within the United States and is considered the best barometer of the country’s economic fitness.
Now while this is not good news it isn’t necessarily bad either since the economy was out of recession in 2003 and growth picked up again. In fact, this is what some forecasters are predicting will happen (e.g. James Hamilton).
Further, this could be good news in terms of interest rates and future increases. The Fed might decide that such increases are unwarranted due to the anemic growth. So, like James Hamilton, the emoticon for the economic outlook is neutral (click the link for an explanation).