The economy did not grow as it was expected to do so in the first quarter of this year. GDP only expanded 0.2, which way down from last quarters 2.2. Experts did not expect as high a growth as last quarter but did expect to see around a 1.0% increase. The reason for the drop can be related to many factors currently effecting the economy. A strong U.S dollar is one of the factors slowing growth for this past quarter. One of the major causes of this slow growth is due to the cold weather that we experienced this past winter. This causes consumption to slow as consumers stray away from purchasing. The outcome of this might be a delay in expected rising interest rates this summer. They might hold off raising these interest rates till this fall.
http://www.cnbc.com/id/102630190
2 comments:
I think that we should plan for this weather. Every winter has been progressively worse and therefore we should begin to forecast this low growth in the beginning of the year.
I have to agree with Coutney we have been experiencing harsher weather across the board in all seasons. I think we must factor this in when it comes to future GDPs and outlook models
Post a Comment