Some not making excuses for the economy
...I left out the part where the weather was blamed on the problem. I think Obamacare is going to continue to be a drag on the economy as is the President's carbon phobic energy policy. Liberalism just is not working.
But not all the reaction was so sanguine. Goldman Sachs' Jan Hatzius noted that real gross domestic income fell 2.3 percent in the quarter, the worst performance since the recession.
And even if the inventory drag reverses, earlier more rosy estimates for 2014 growth may soon have to be revised down.
"It is not certain, though, that Q2 growth will make up all the lost ground, not least because the severe weather has already left its mark on the April data," Pantheon Macroeconomics' Ian Shepherdson wrote in a client note. "We assume second quarter growth will rebound to about 3 percent, but that will leave the average for the first half of the year at just 1 percent. As a result, the Fed's forecasts for growth this year will have to be revised down substantially."
Friday brought more troubling data, as nominal personal spending fell 0.1 percent in April, well below the consensus expectations of a 0.2 percent gain. Once again, economists blamed one-off factors including the weather (a big drop in utility spending) and the late Easter (lower retail sales).
They may be right. But at some point Democrats will have to start seeing consistently good data—rather than spend their time explaining away bad data—in order to enjoy a long-hoped-for political lift.