US economy slowed to scant 0.7 pct. growth rate last quarter

[Omaha Steve]

Source: AP

By MARTIN CRUTSINGER

WASHINGTON (AP) — The U.S. economy's growth slowed sharply in the final three months of 2015 to a 0.7 percent annual rate. Consumers reduced spending, businesses cut back on investment and global problems trimmed exports.

The slowdown could renew doubts about the durability of the 6½-year-old economic expansion.

The government's estimate Friday of the economy's expansion in the October-December period was less than half the 2 percent annual growth rate in gross domestic product in the third quarter. It was the weakest showing since a severe winter reduced growth to a 0.6 percent annual rate in last year's first quarter.

Activity should rebound in the current January-March period, though economists worry that China's troubles and sinking oil and stock prices could dampen the recovery.

FULL story at link.


FILE - In this Tuesday, Jan. 26, 2016, file photo, Jeff Cuvelier, Jorgensen Forge master machinist, left, talks with Gov. Jay Inslee, center, on a tour of the plant in Seattle. On Friday, Jan. 29, 2016, the Commerce Department issues the first of three estimates of how the U.S. economy performed in the October-December quarter. (AP Photo/Elaine Thompson, File)

Read more: http://bigstory.ap.org/article/603b4601bc974b3c881a2fff6dfab2dd/us-economy-slowed-scant-07-pct-growth-rate-last-quarter

[houston16revival]

1. No worry

No more Fed tightening until after the election

December 2016 though will be .5% rise

[november3rd]

2. There's an energy glut

Our mass production of fossil fuels is driving the economic downturn.

[forest444]

4. That and other things.

While fixed investment in mining exploration, shafts, and wells - the one category that would be negatively impacted by low oil prices - did as the article noted fall by 35% in 2015, historically the positive impact this has on most other sectors overshadows these declines by a mile.

So what accounted for the 4th quarter slowdown? A sharp drop in motor vehicle output, foe example, took 0.6% from the growth number alone - more than the mining investment drop (which includes oil and gas) did in all of 2015 (0.4%). While low oil prices helped auto sales reach record levels (we finally exceeded the auto sales record set in 2000), automakers have of late again taken to shifting their production to Mexico - and the above number reflects that.

Cutbacks in inventories shaved another 0.4% last quarter. Inventory stockpiling had been at historically high levels for too long given the subdued rate of consumer spending growth, and some retrenchment was inevitable. Businesses can't hoard too much inventory indefinitely when wages are rising as slowly as they are. We'll have too see if that inventory liquidation trend stretches into 2016.

[MrTriumph]

3. Republican candidates bad mouthing the economy contributes to slowing.

The R's unceasing disparagement of the economy during the popular televised debates is taking its toll. Blame any slowing on Trump, Cruz and the rest of the field.

[Odin2005]

5. A Hillary nomination will be a disaster if we have a recession this year.

[Dont call me Shirley]

6. And .0695% went to the top .01%.