Well this is going to require another Summer of Recovery.
The revision to the first quarter 2014 GDP number is in, and it turns out instead of barely growing 0.1 percent, the economy contracted by a full percentage point.
The latest lousy number is being attributed to the extremely cold weather. But that can’t be all of it. Economists predict some brightening the second quarter, but who knows? According to the Wall Street Journal:
The three-month contraction isn’t expected to herald a prolonged downturn, though it’s rare for the economy to shrink outside of a recession . . .
Gauges of industrial production, retail sales and durable-goods orders all posted solid gains in February and March before weakening in April . . .
The housing market surged in 2012 and into 2013, but has slowed over the past year as mortgage rates have climbed and prices have surged.
Many economists had hoped 2014 would be a breakout year for growth, encouraged by an economy that grew at a 3.4% pace in the second half of 2013. Those hopes have been deferred—if not yet dashed—by the latest stretch of weakness.
Five years in, and we’re still waiting for the “breakout” year. In fact, we’re always getting ready for the “breakout year.” Every year.
But, saddled with debt, Obamacare, higher taxes and mounting regulations, it doesn’t look like there will be a breakout year. Lucy just wont hold the ball down long enough for us to kick.