Newsroom
April 28, 2016
U.S. economy grows 0.5% in 1Q
The U.S. economy grew by a tepid 0.5 percent in the first quarter, which is the weakest growth pace in two years, according to the Commerce Department's initial estimate Thursday.
"First quarter [gross domestic product] results have been consistently disappointing in recent years," NAFCU Research Assistant Yun Cohen said in a Macro Data Flash report. "Multiple factors appear to have contributed to the slowdown, including financial market turmoil, weaker overseas demand, a stronger dollar and low commodity prices."
Consumer spending increased 1.9 percent, government spending increased 1.2 percent, residential investment increased 14.8 percent and nonresidential investment decreased 5.9 percent. Inventory accumulation decreased from $78.3 billion in the fourth quarter last year to $60.9 billion. Net exports fell from $-551.9 billion to $-566.6 billion.
"Consumer spending, which accounts for more than two-thirds of U.S. economic activity, also decelerated for the third consecutive quarter," Cohen said. "However, the economy is expected to perform better later this year as the labor market improves and some of the transitory headwinds subside."
Core PCE inflation (excluding food and energy), the Fed's preferred inflation metric, increased from 1.3 percent in the fourth quarter 2015 to 2.1 percent in the first quarter 2016. Overall PCE inflation was 0.3 percent in the first quarter – unchanged from the fourth quarter.
"First quarter [gross domestic product] results have been consistently disappointing in recent years," NAFCU Research Assistant Yun Cohen said in a Macro Data Flash report. "Multiple factors appear to have contributed to the slowdown, including financial market turmoil, weaker overseas demand, a stronger dollar and low commodity prices."
Consumer spending increased 1.9 percent, government spending increased 1.2 percent, residential investment increased 14.8 percent and nonresidential investment decreased 5.9 percent. Inventory accumulation decreased from $78.3 billion in the fourth quarter last year to $60.9 billion. Net exports fell from $-551.9 billion to $-566.6 billion.
"Consumer spending, which accounts for more than two-thirds of U.S. economic activity, also decelerated for the third consecutive quarter," Cohen said. "However, the economy is expected to perform better later this year as the labor market improves and some of the transitory headwinds subside."
Core PCE inflation (excluding food and energy), the Fed's preferred inflation metric, increased from 1.3 percent in the fourth quarter 2015 to 2.1 percent in the first quarter 2016. Overall PCE inflation was 0.3 percent in the first quarter – unchanged from the fourth quarter.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.