Economics
GDP Likely to Show ‘Misleading’ U.S. Weakness as Fed Plots Path
- Projected 1% 1Q GDP growth belies solid consumer spending
- Income and spending report to show big impact of inflation
Shoppers at a mall in Arcadia, California.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
The U.S. economy’s latest report card -- featuring fresh readouts on growth, inflation, spending and wages in the first three months of the year -- is set to include a mix of good and bad marks.
The headline measure of first-quarter economic growth will appear weak, perhaps even negative, as a ballooning trade deficit and slower inventory growth masked solid consumer spending. Income gains in March were likely erased by an acceleration in inflation.