Spending and Exports Increase GDP

by Tim Manni

The US economy improved slightly in the first quarter of 2008, according to a report released today by the Commerce Department. The Gross Domestic Product (GDP), a gauge of goods and services produced in the US, rose by one percent. Larger growth in consumer spending and exports spurred the GDP past initial estimates of a 0.6% gain.

The weak dollar has expanded US exports, keeping export prices low, and remains one of the last sectors supporting the struggling economy. Meanwhile, imports have decreased 0.7%. Retail sales more than doubled original forecasts in May thanks to billions of dollars doled out in stimulus checks.

The GDP’s price index, a closely monitored measurement of inflation, rose at a rate of 3.6%. The “core” price index, which excludes food and energy costs, rose by 2.3%. In a statement released yesterday’s by the Fed after the Federal Open Market Committee (FOMC) meeting, the central bank said they expect “inflation to moderate later this year and next year.”

Tags: Consumer, Economy, GDP

2 Responses to “Spending and Exports Increase GDP”

Wilbert Barton Says: March 16th, 2009 at 7:09 pm

The current economy is a mess everybody knows it. What is amazing is how some people continue their daily life as if nothing changed and one such behavior is their attitude to credit cards. The first step Americans need to do is get rid of their credit card debt as it is the best symbol for how Americans lived above their means for so many years getting all of us to this big economy mess. First step is education. Here is a good resource to read about credit cards http://www.creditcardknowhow.info start with understanding and then please stop loading your cards with too many charges.
Tim Manni Says: March 17th, 2009 at 10:45 am

Wilbert,

I think it’s ok that some people continue as if nothing’s wrong, as long as they’re not engaging in damaging behaviors like increasing their credit card debt — as you pointed out. It’s unfortunate that some irresponsible card holders are causing credit card companies to change their terms and conditions for the worse, putting more pressure on responsible consumers, making it even harder to keep the cards paid off.

Thanks for your comment, hope to hear from you again soon,
Tim