Weak consumer spending seen restraining U.S. growth in first quarter

“The anticipated tepid first-quarter growth will, however, probably not be a true reflection of the economy, despite the expected weakness in consumer spending” writes Midwest Communications Inc for Consumer spending in the last quarter was likely held back by delayed tax refunds and impact of tax cuts.With consumer spending slowing, inventories probably accumulated in the first quarter. Inventory investment is expected to have contributed to GDP growth after subtracting 0.53 percentage point in the fourth quarter.Economists estimate that growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, braked to below a 1.5 percent rate in the first quarter.

Share This:

Related posts