The US economy grew 2.4% in the 1st quarter of this year. Though below expectations of at least 3%, the rate was much higher than the 0.4% increase in the 4th quarter of last year. The LA Times reports:
U.S. economic growth accelerated from January through March, buoyed by the strongest consumer spending in more than two years. The strength offset further declines in government spending that are expected to drag on growth throughout the year.
The Commerce Department said Friday that the overall economy expanded at an annual rate of 2.5 percent in the first quarter, rebounding from the anemic 0.4 percent growth rate in the October-December quarter. Much of the gain reflected a jump in consumer spending, which rose at an annual rate of 3.2 percent. That’s the best since the end of 2010. Businesses responded to the greater demand by rebuilding their stockpiles. And home construction rose further.
But government spending fell at a 4.1 percent rate, led by another deep cut in federal defense spending. That kept growth below economists’ expectations of a rate exceeding 3 percent.
And today we celebrate...