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The Fed keeps trying to take away the punch bowl — but the economy parties on

Jul 27, 2023
Economists expected a downturn in economic growth from the first quarter’s 2% annual rate. Instead, growth accelerated to 2.4%.
The newest GDP report showed greater investment in auto and airplane factories, among other things.
Juliette Michel/AFP via Getty Images

What does the decline in corporate profits say about the economy?

May 25, 2023
Profits fell for the second quarter in a row, partly due to Fed rate hikes. Whether it’s a good thing depends on your role in the economy.
Profits are falling, but the stock market is "not freaked out," says Bruce Sacerdote of Dartmouth.
Timothy A. Clary/AFP via Getty Images

Are the latest GDP numbers good news? It depends on how you look at them.

Jan 26, 2023
The economy grew, but not as much as expected. Some parts of the economy are slowing, but not as much as expected.
An increase in business inventories helped boost economic activity last quarter. But whether that's positive or negative depends on whom you ask.
George Frey/Getty Images

Gross domestic income (GDI), explained

Aug 25, 2022
GDI should be close to GDP, theoretically. It's not.
Measure all spending in an economy and all income in an economy, and they should be roughly the same. New figures show that's not the case right now.
Angela Weiss/AFP via Getty Images

GDP dips by 0.9% in second quarter, but consumers are still spending

Jul 28, 2022
While consumers cut back on goods spending, spending on services jumped.
Spencer Platt/Getty Images

This week's GDP number may show a shrinking economy. But that doesn't equal recession.

Jul 25, 2022
There are reasons to take a weak gross domestic product report with a big grain of salt.
Thursday’s report on gross domestic product may show a contracting economy, but recessions are typically determined by a wider range of data.
Spencer Platt/Getty Images

Some economic strengths revealed in U.S. quarterly GDP figure

Jan 26, 2018
Gross domestic product in the fourth quarter of 2017 rose 2.6 percent on an annualized basis, compared to 3.2 percent in the third quarter, according to the Bureau of Economic Analysis. The rate of economic growth for the 2017 calendar year was 2.3 percent, compared to 1.5 percent in 2016. Several components of GDP were particularly strong […]

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