As known from:
CoinWireICOBenchCoinCodex
Write a Review
Write a Review
Nothing Found
Contains commercial content
TradersBest.com / US Economy Suffers With Weak First-Quarter GDP

US Economy Suffers With Weak First-Quarter GDP

Publish Date: 27/05/2022

Thursday saw the Commerce Department reporting a 1.5% drop in GDP for the first quarter of 2022. This was worse than expected and it is believed to be due to a sluggish rate of business and private investment failing to keep up with high consumer spending activity. 

The Dow Jones had initially predicted that the US GDP would only fall by 1.3%, but the combined factors of the Omicron variant, war in Ukraine, supply chain issues and the continued trade deficit added to the gloomy economic picture. In particular the slow restocking of products in stores and goods in warehouses is thought to have had a large impact over the disappointing GDP figures.

It marks the most difficult quarter in the US economy since the second quarter of 2020 – the moment that the nation’s GDP slumped over 31% as an economic shutdown was introduced to combat the spiraling Covid-19 infection rates.

Can the US economy bounce back again?

Analysts have high hopes that the US economy has what it takes to come back stronger in the second quarter of the year. It is believed that there will be a growth of between 1.5% and 3% in the second quarter as the issues like the supply chain crisis and the pandemic begin to subside.

While even the most optimistic predictions are fairly mixed, most believe that it is the actions of the Federal Reserve that will have the biggest impact on the economic recovery. The Fed’s main mission appears to be bringing inflation back down to a reasonable rate while keeping the risk of recession at bay.

The good news is that consumer spending appears to be improving across the US. While the nation has been stricken with inflation rates of over 8%, personal consumption expenditures were up 3.1% which is a fair improvement over the initial estimates of 2.7%.

This has been mirrored by positive news from the labor market that saw a decrease in the number of jobless claims of 8,000 in May, along with a steady increase in wages that have struggled to keep up with the rate of inflation. It is among the lower-income households of the US that the effects of inflation have been most harshly felt with the cost of essentials like groceries and fuel reaching record highs.

The cost of living crisis appears to be having an impact on the approval ratings of President Joe Biden who has seen his popularity slide to its lowest point, with inflation being named as a key reason.

Despite the inflation problem, the US economy as a whole is largely healthy. Alongside the positive news about consumer spending, there has been a rise of 6.8% in business investment in productivity sectors like equipment and software.

But with some aggressive interest rate hikes from the Federal Reserve still due, a sluggish housing market and the uncertainty of war in Ukraine, it seems like it could be a difficult few months for the US economy.

Read Also
Walmart and Target Stocks Plummet Amid Market Uncertainty
Stocks in the leading US retailers Walmart and Target plummeted this week ...
Federal Reserve Meeting to Shape US Economic Fightback
Tuesday sees the Federal Reserve hosting a meeting that’s widely expected to ...
US Stocks Slump Following Omicron Concerns and Biden’s Stalled Spending Plan
It’s been a bruising start to the week for the US stock ...
US Stocks Rise Despite Inflationary Warnings
Friday saw US stocks ending the day’s trading at a record high ...
Stocks Fall Following Disappointing US Jobs Data
Wall Street investors dumped tech stocks in a mass sell-off following November’s ...
Latest News
Study: how do finances shape our love life?
Do we find someone less attractive if they're ...
Is FTX Bankrupt? 
The crypto market has seen a drastic change ...
Disney Shares Jump 6% After Positive Earnings Report
A booming subscriber base and the return of ...
Alibaba Posts Flat Revenue Growth But Stock Still Jumps 6%
Chinese ecommerce giant Alibaba posted its first earnings ...
Intel Stock Slumps Over 8% Following Weak Earnings Report
Chip-maker Intel suffered a disastrous end to last ...
Top Forex Sites
Ally Invest
Ally Invest
Ally Invest Review
4.8/5
Webull
Webull
Webull Review
4.6/5
Kraken
Kraken
Kraken Review
4.3/5
Nadex
Nadex Review
3.6/5
Interactive Brokers
Interactive Brokers Review
4.8/5
Receive the latest trading news by email + our free eBook
Crypto eBook EN
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Receive the latest trading news by email + our free eBook
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPGGamblers AnonymousCloudflareSSL
Close
Unlock the Market’s Potential! Discover Our Top Trading Platform Deals.
eToro
eToro
eToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation
Go to eToro
Coinbase
Coinbase
T&Cs apply, 18+
Go to Coinbase
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site