The Meh Economy: Today's GDP Report in 2 Minutes

More

Welcome to the mehcovery.

Three weeks after an exceedingly meh jobs report (+120,000 jobs), we've got an equally meh GDP report. The economy grew just 2.2% in the first three months of 2012.

These numbers will be revised, possibly dramatically, in the next few months. This first first read shows strongish consumer spending (it was the best quarter for auto sales in four years) offset by slowing business investment and falling military spending.

Here's a great breakdown from Scott Barber at Reuters.

Screen Shot 2012-04-27 at 10.23.54 AM.png

It's considered tedious to talk too much about the weather, but the unseasonably warm winter probably played a big role in today's mehness. Home construction rose at its fastest pace since the second quarter of 2010, probably thanks to the warm weather. But spending on utilities fell, as families spent less to heat their homes, also probably thanks to the warm weather. Both trends could mitigate in the second quarter. Or maybe not? The future is complicated!

Overall, 2.2% is neither great, nor bad, nor, perhaps, meaningful. It could be revised up to 3% or down below 2% in the next few months. No matter what, it could always worse.

We could be Europe:
 Screen Shot 2012-04-27 at 10.24.04 AM.png

Jump to comments
Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Get Today's Top Stories in Your Inbox (preview)

'Stop Telling Women to Smile'

An artist's campaign to end sexual harassment on the streets of NYC.


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Where Time Comes From

The clocks that coordinate your cellphone, GPS, and more

Video

Computer Vision Syndrome and You

Save your eyes. Take breaks.

Video

What Happens in 60 Seconds

Quantifying human activity around the world

Writers

Up
Down

More in Business

Just In