Bad news for Democrats--No Recession
The bruised economy limped through the first quarter of this year at only 0.6 percent as housing and credit problems forced people and businesses alike to hunker down.Yes, the Democrats are still optimistic that they can have a recession to run against. They really, really want one. When the inflation numbers come out they will be hoping for a big number there too. Certainly the price of gas and some food items has gone up sharply, but they may have been offset by housing prices becoming more affordable, i.e. falling.
The country's economic growth during January through March was the same as in the final three months of last year, the Commerce Department reported today. The statistic did not meet what economists consider the classic definition of a recession, which is a retraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if modestly.
Many analysts were predicting that the gross domestic product (GDP) would weaken a bit more — to a pace of just 0.5 percent — in the first quarter. Earlier this year, some economists thought the economy would actually lurch into reverse during the opening quarter. Now, they say they believe that will likely happen during the current April-to-June period.