❗Let's close the gap: We still need your help to raise $40,000 by April 1. Donate now

A look at why first-quarter GDP is often lackluster

Mitchell Hartman Apr 28, 2017
HTML EMBED:
COPY

A look at why first-quarter GDP is often lackluster

Mitchell Hartman Apr 28, 2017
HTML EMBED:
COPY

Today’s report of a tepid rise in first-quarter gross domestic product, by 0.7 percent, comes with an asterisk: There appears to be a recurrent pattern of low growth in first-quarter GDP going back years. Some economists argue it goes back decades. That’s thanks to something economists call “residual seasonality” — recurrent seasonal patterns in the GDP data that are not already accounted for by seasonal adjustments applied by government economists. So is this initial first-quarter GDP report really a good way to predict where the economy is headed? 

Click the audio player above to hear the full story.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.