Know The Difference Minute

Despite strong consumer spending, the Commerce Department reported today that the US economy contracted by 1.5% in first quarter 2022.

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No pressure, Q2.
Welcome to the Know the Difference Minute for Thursday, May 26th.
The textbook definition of a recession is back-to-back negative quarters of GDP. The first is now on record.
Despite strong consumer spending, the Commerce Department reported today that the US economy contracted by 1.5% in first quarter 2022.
Not great but remember COVID and Q2 of 2020. That’s when we saw a GDP drop of 31.2% and the start of a 2-month recession, the shortest in US history.
The US consumer might be the MVP. Even in the face of high inflation, first quarter personal consumption spending beat estimates. Plenty of jobs. Higher wages. So, many Americans are traveling, going to restaurants, and buying concert tickets.
Most economists believe this quarter will rebound. CNBC’s survey is the most optimistic with a median expectation of 3.3% growth. The Atlanta Fed’s prediction is 1.8%.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.