This Chart Tells Us the Slowdown Has Only Just Begun

Source: American Consequences
by C Scott Garliss

“We just received another sign that U.S. economic growth is slowing. The Bureau of Economic Analysis (BEA) released advanced first-quarter GDP numbers last Friday. The reading showed a 1.4% decline compared with Wall Street’s expectation for 1% expansion. That number also marked a sharp slowdown from the 6.9% real GDP growth we saw in the recent fourth quarter. But we must consider where the economy was a year ago. In the same quarter of 2021, output jumped 6.4%. When we view that relative to the 1.85% average quarterly increase over the past 15 years, the first-quarter gain in 2021 was huge. So, that’s a difficult comparison to overcome… It’s hard to put up huge growth every year. The sluggish economic growth is even more glaring when we look at the annual number.” (05/03/22)