The economy as measured by the gross domestic product grew at an annualized rate of 3.2 percent in the first three months of this year, leaving forecasters unsurprised.
The above graph gives you a sense of the progression. While this isn't the growth we saw at the end of last year, when businesses were replacing lost inventory at a fantastic clip, the news represents solid forward progress. While we won't get the latest employment numbers until the end of next week, we can hope for some employment expansion now that growth has continued for three quarters -- no more lagging indicator excuses, please. Most expansion came from consumer spending, although exports and further inventory replacement also drove the quarter.
Congressional Democrats should be pleased with the news, because, as John Sides is ever at pains to point out, "economic growth, not unemployment, is what is most strongly associated with seat losses for the president’s party."
-- Tim Fernholz
