Neil Irwin assures us that there is “no reason to panic” about the Commerce Department’s lackluster report showing 0.1 percent GDP growth rate for the first quarter.
“Above all, this report helps highlight how the complexion of U.S. economic growth is changing.”
“In short: Business investment is no longer a significant driver of the expansion. And nothing else (government spending, trade, housing) has emerged to replace it.”
“Personal consumption, the biggest component of G.D.P., has been the mainstay of this expansion, growing steadily every quarter, driven by Americans’ appetites for goods and services. Personal consumption has risen by at least a 1.5 percent annual rate for 17 straight quarters. It shows no signs of faltering.”