Economy Shrinks in Q1; Annual Growth Still Stuck in the Doldrums

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Today brings disappointing economic news. The economy didn’t just grow slowly in the first quarter, it actually shrunk by 0.7 percent. As usual, winter weather is getting part of the blame, and some economists are going even further, wondering if we need to step back and take a look at the formula for seasonal adjustments. Perhaps, for some reason, the formula is no longer reflecting reality during the winter quarter.

Maybe. But what this shows is that although the US economy continues to putter along in decent shape, it still hasn’t reached takeoff velocity. The economy has been growing at a rate of 2-3 percent per year for the past five years, and there’s little evidence this is going to change anytime soon.

HERE ARE THE FACTS:

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ONE MORE QUICK THING:

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As we wrote over the summer, traffic has been down at Mother Jones and a lot of sites with many people thinking news is less important now that Donald Trump is no longer president. But if you're reading this, you're not one of those people, and we're hoping we can rally support from folks like you who really get why our reporting matters right now. And that's how it's always worked: For 45 years now, a relatively small group of readers (compared to everyone we reach) who pitch in from time to time has allowed Mother Jones to do the type of journalism the moment demands and keep it free for everyone else.

Please pitch in with a donation during our fall fundraising drive if you can. We can't afford to come up short, and there's still a long way to go by November 5.

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