The U.S. gross domestic product grew at a rate of 3.2 percent in the first quarter and consumer spending increased by 3.6 percent, the government reported today.
Normally, these kind of numbers would be cause for celebration, but investors weren’t impressed, pushing the Dow down more than 100 points in late afternoon trading.
Some analysts were expecting slightly higher growth in the GDP and some experts noted that 1Q growth was down from 5.6 percent in the fourth quarter.
“The market may just be a little bit tired. A lot of good news is priced into the market,” Michael Sheldon, chief market strategist at RDM Financial Group in Westport, Conn., told the AP.
Despite the overall lack of enthusiasm among analysts, The Curious Capitalist found a nugget of good news buried in the government report — business spending on equipment and software jumped 13 percent in the first quarter.
Now that is definitely good news. Increased business spending is just what the recovery needs.
Bureau of Economic Analysis news release here.