4.8% GDP Growth

Not that anybody cares, it's not as interesting as gas prices or anything, but:

WSJ.com - U.S. Economy Grew at 4.8% Rate In First Quarter, Fastest Since 2003 (Paid link)

WASHINGTON -- The U.S. economy roared out of a soft patch on its fastest run in nearly three years during the first quarter, powered by consumer and business spending.

Meanwhile, U.S. employment costs advanced at their weakest pace in seven years during the first quarter, suggesting that a very tight jobs market isn't allowing workers to bid up wages and benefits, which should help limit inflationary pressures.

Gross domestic product increased at a seasonally adjusted 4.8% annual rate January through March, the Commerce Department said Friday in its first estimate of first-quarter GDP. Price gauges within the report indicated inflation eased.

The Street was looking for 5.0%, so the jump was already priced in. But the truth is that this is a perfect, Goldilocks economy. I fear Larry Kudlow is right, people are just used to prosperity, those under 40 haven't seen a real recession. Perhaps we can take 4% growth for granted, but not if we tax oil companies and send out $100 checks...

Economics and Markets Posted by jk at April 28, 2006 10:12 AM