Economy Grows By Decent 2% Annualized Rate Despite Fuel Price Inflation; New Jobless Claims Fall to Near Record Lows

Via Ed Morrissey. It's a decent growth figure, rebounding from the weak 0.5% in the fourth quarter of 2025.

Real gross domestic product (GDP) increased at an annual rate of 2.0 percent in the first quarter of 2026 (January, February, and March), according to the advance estimate released today by the U.S. Bureau of Economic Analysis. In the fourth quarter of 2025, real GDP increased 0.5 percent.

The contributors to the increase in real GDP in the first quarter were investment, exports, consumer spending, and government spending. Imports, which are a subtraction in the calculation of GDP, also increased. ...

Real final sales to private domestic purchasers, the sum of consumer spending and gross private fixed investment, increased 2.5 percent in the first quarter, compared with an increase of 1.8 percent in the fourth quarter.

The nominal rate of growth -- unadjusted for inflation -- came in a huge 5.6%. That's a good sign, because the current inflation is temporary due to Iran throttling the Strait of America.

Danny Dayan @DannyDayan5

The economy is simply on fire.

-Claims lowest of cycle, 2nd lowest since 1969.
-ECI shows wages accelerating.
-Core PCE deflator (pre war) hottest since 2023.
-Nominal GDP very strong

If anyone you follow is still talking rate cuts, fire them.

By "claims," he means "new jobless filings," which came in at 189,000, the lowest since... 1969.

posted by Disinformation Expert Ace at 01:10 PM

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