GOOD GROWTH
04/30/2025 |
While a recession may well be in the offing or already here, the dismal 25Q1 GDP reading of -0.3% Q-o-Q annualized in no way feeds that narrative! Imports rose an astounding 41%, which single-handedly pulled GDP down five percentage points, as US firms worked to front-run tariffs. And the resulting rise in inventories boosted GDP by 2.8 percentage points. The economy was fundamentally healthy, and underlying growth was probably 2%.