Rocky Start on 2017 U.S. GDP Does Not Alter Continued Slow Trend Growth
May 1, 2017 | The Conference BoardEstimated reading time: 1 minute
The U.S. Bureau of Economic Analysis today reported 0.7% annualized growth in real Gross Domestic Product for the first quarter of 2017.
GDP growth made a sluggish start to 2017, led by weak consumer spending, which saw its smallest quarterly growth since the end of 2009. First quarters, on a seasonally adjusted basis, have been weak in recent years and 2017 has been no exception. A cold winter can lead to delays in construction activities. A warm one, as was the case this year, can produce lower utility bills. Sky high consumer confidence and rising wages suggest that spending should bounce back quickly during the rest of the year, driving the economy to overall growth of around 2% in 2017, in line with long-term trends.
In contrast, non-residential business investment showed more strength in the first quarter, led by energy related investment in equipment and structures. The big question going forward is whether elevated business sentiment measures, particularly among small firms, will lead to a surge in investment. A wait and see environment may last into 2018 if uncertainty regarding future tax policy persists. An improved global outlook helped to boost exports and slightly reduce the trade deficit while inflation expectations and commodity prices start to rise. Inventories also made a negative contribution to first quarter growth.
The Federal Reserve is still likely to raise interest rates at least twice more in 2017. Employment growth will probably slow due to limited labor market slack. So long as growth and inflation expectations remain near two percent, rate normalization should continue.
Suggested Items
Curtiss-Wright Awarded Contracts Valued in Excess of $130M to Support Critical U.S. Naval Defense Platforms
05/16/2024 | BUSINESS WIRECurtiss-Wright Corporation announced it has been awarded contracts valued in excess of $130 million to provide propulsion valves, pumps and advanced instrumentation and control systems for the U.S. Navy’s Virginia-class nuclear powered attack submarine, Columbia-class submarine and Ford-class aircraft carrier programs.
Flex Announces Upcoming Changes to Its Board of Directors
05/07/2024 | FlexFlex announced that consistent with its succession plan, Michael D. Capellas, non-executive Chair of the Board of Directors of Flex, has informed the Board of his decision not to stand for re-election to the Board at the company's 2024 Annual General Meeting of shareholders to be held on August 8, 2024. Mr. Capellas has served on the company's board for 10 years, including as Chair since 2017, during which time he played a key role in building Flex's reputation as a trusted global technology, supply chain and manufacturing solutions partner and driving the company's success.
Europlacer Presents New Range of iineo SMT Placement Machines.
05/01/2024 | EuroplacerFor more than 15 years, the Europlacer iineo placement machines have made their mark on the SMT industry with unique features and unrivalled flexibility. Today, Europlacer announces the launch of the second generation iineo.
Incap US Hosts Annual Food Drive
04/30/2024 | IncapIncap US recently concluded its annual food drive, a tradition aimed at supporting the Greater Washington County Food Bank. This year marked the fourth year of the initiative, and we couldn’t be prouder of the collective effort that was made to its success.
Scanfil Uses Employee Engagement Survey to Improve
04/30/2024 | ScanfilOnce a year Scanfil arranges Employee Engagement Survey (EES) in order to get valuable insight from its employees. In EES all employees are invited to share their opinion, bring ideas for improvements, and contribute to making Scanfil a better place to work.