(Hat Tip: Huckfunn)
The great Obama Boom is going through a rocky phase. After an initial reporting of GDP coming in for the 1st Quarter of 2012 at 2.2%, the media celebrated. This said it was proof of the strong recovery and was a good start to the year. That number has been reduced to 1.9%. The great economic recovery is starting the year with 1.9% growth. To make matters worse this week’s unemployment claims rose and the ADP monthly job report came in weaker than expected.
Private payroll growth accelerated only slightly last month and claims for jobless benefits rose last week, suggesting the U.S. labor market recovery was stalling after a strong performance early in the year.
Other data on Thursday showed economic growth in the first quarter was a bit softer than initially estimated, with businesses restocking shelves more slowly than previously thought and government spending declining more sharply.
Private employers created 133,000 jobs in May, payrolls processor ADP said. That was below economists’ expectations for 148,000 jobs.
While economists have largely shrugged off the recent cooling in the labor market as payback for strong gains during winter, there are signs of fundamental weakness.
Initial claims for state unemployment benefits rose 10,000 to a seasonally adjusted 383,000, a Labor Department report showed. Claims have now risen in seven of the last eight weeks.
Separately, gross domestic product increased at a 1.9 percent annual rate in the first quarter, down from the 2.2 percent the Commerce Department had estimated last month. The economy grew at a 3.0 percent rate in the fourth quarter.
The report also showed that after-tax corporate profits dropped for the first time in three years last quarter.
A modest downward revision to consumer spending, which accounts for about 70 percent of U.S. economic activity, and stronger import growth also accounted for the weaker first-quarter output. Economists polled by Reuters had expected growth would be revised down to a 1.9 percent pace.
Terrible economic news, but don’t worry, good times are ahead!
While the small inventory build-up held back growth in the January-March quarter, restocking of shelves, retreating gasoline prices and an improving housing market should provide a boost to output in the second quarter.
Growth in the second quarter is currently estimated at a pace of about 2.5 percent
Ha ha ha ha ha ha ha! These people really have have faith in the Pharaonic Regime. Despite weeks and months of bad data, the media and their “economists” still claim good times are here or are just around the corner. They have been proclaiming this for the last 3 years yet these good times have not materialized.
The Obama Boom is a lie that refuses to die. Only in Pharaonic America is 1.9% GDP growth and 100,000 jobs created monthly is considered great economic times.