Comment on Q1 GDP: Kathy Bostjancic, Director for Macroeconomic Analysis, The Conference Board
NEW YORK, April 27, 2012 /PRNewswire/ — The U.S. Bureau of Economic Analysis today reported 2.2 percent growth in real gross domestic product for the first quarter of 2012. Following a strong performance at the end of 2011, this most recent growth rate may be called modest, at best. Still, there are signs of strengthening in the underlying dynamics of the economy. The Conference Board Leading Economic Index(®) for the United States signals sustained moderate growth in the next three to six months. Despite consumer anxiety over gas and food prices that are stretching household budgets, consumers are still spending and there are signs of improvement in the housing market — improvement that may be sustained, especially if gains in the labor market hold up at around 175,000 jobs per month. Continued consumer spending, along with some business investment and new export opportunities, could be enough to deliver moderate overall economic growth, even alongside moderate increases in “core” inflation (which excludes food and energy).
SOURCE The Conference Board