More MAGAnomic Winning – Q1 GDP Growth 2.3 Percent (Higher than expected), Wage Growth 2.9 Percent (Much Higher than expected)…

The Bureau of Economic Analysis (BEA), who track GDP  -and-  U.S. Labor Department (DoL) Bureau of Labor and Statistics (BLS), who track wage growth, have released the initial sets of analysis for Quarter 1 of this year (Jan-March).   The first quarter growth in GDP comes in at 2.3%.  [Most estimates initially expected 2.0% or slightly less.]

CBS – […] It’s common for economic growth to slow in the first quarter and then accelerate later in the year. Still, the January-March increase was better than expected: Economists had foreseen a 2 percent annualized rate. In the current quarter, economists expect growth to surpass 3 percent.

The 2.3% first quarter result puts 2018 on track to achieve President Trump’s targeted growth rate: over three percent combined growth for the full year.   Due to seasonal fluctuations the first quarter is historically the weakest for GDP growth.  The second quarter will likely rebound well above 3.5% as the historic Q1 -vs- Q2 trend shows above.

One of the positive factors driving the strong Q1 outcome was growth in exports that helps to offset climbing imported purchases, and the continued trade deficits which POTUS Trump is confronting.

Additionally, beyond the strong GDP result, we see a very positive sign in wage growth.  Year-over-year wage growth well exceeded expectations at 2.9%

Compensation costs for private industry workers increased 2.8 percent over the year. Wages and salaries increased 2.9 percent for the current 12-month period. (link)

Continual wage growth is a part of President Trump’s MAGAnomic policy; and remember the lowered tax rates went into effect in December.  Meaning Q1 wages were higher and simultaneously income tax withholding on those wages are lower… that means more take home pay.   Emphasis:  More Take-Home Pay!!

CTH has been predicting that MAGAnomics as applied would mean in “Quarter Two” of this year we would begin the period of strongest wage rate growth in three decades. [ FYI, that’s  right now ] We have repeatedly predicted that April through June 2018 is the beginning of “the big lift” in blue-collar wages.

A key part of the America-First MAGAnomic ‘Main Street’ policy is to protect the middle-class by driving wages up at a faster rate than the rate of inflation.

This is how the middle-class is able to afford a higher standard of living, and simultaneously ‘savers’ will gain higher rates of return on their savings.

For 30 years economic policy was doing exactly the opposite; now, with MAGAnomics in full swing, we are reversing that trend.  CNBC begins to note the activity:

CNBC – […] According to surveys, the tax cuts did not reflect on many workers’ paychecks until late in the first quarter. Income at the disposal of households increased at a 3.4 percent rate in the first quarter, accelerating from the fourth quarter’s 1.1 percent pace. Households also boosted savings during the quarter. (link)

(DOL Source Link)

 

 

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This entry was posted in Big Government, Decepticons, Deep State, Dem Hypocrisy, Donald Trump, Economy, Election 2016, Election 2018, media bias, President Trump, Taxes, Trade Deal, Uncategorized, US Treasury, USA. Bookmark the permalink.

79 Responses to More MAGAnomic Winning – Q1 GDP Growth 2.3 Percent (Higher than expected), Wage Growth 2.9 Percent (Much Higher than expected)…

  1. Swanzinator says:

    The Dems must feel like they’re playing a losing game of Whack-a-Mole this week…

    Kanye announces support for Trump… Whack!
    Denuclearization of the Korean Peninsula… Whack! Whack!
    GDP and wage growth exceed expectations…Whack! Whack! Whack!
    Former intelligence chiefs getting exposed for all that Trump claimed… Whack Whack Whoops, dropped the mallet!

    So much winning. For the moles!

    Liked by 30 people

  2. Wretched1 says:

    And you know, it will be revised upward twice more before it’s “official.” Even then, the bureaucracy slants any good news/polls against PDJT… however, at some point, the dam will break and the truth will speak for itself.

    Liked by 14 people

    • Just Me says:

      And I don’t think I’m the only one here who remembers *very* *clearly* how, under the previous administration, economic reports were ALWAYS revised downward, and jobless reports were ALWAYS revised upward, in the weeks following the preliminary announcements.

      And the way the press that would paint the rosiest possible glow onto the ugly facts, and absolutely ignore the even uglier revisions.

      Liked by 8 people

  3. Minnie says:

    💥 Kaboom!! 💥

    Each day gets sweeter and sweeter 😁

    Liked by 10 people

  4. LBB says:

    These were really good numbers for Q1 (first read). I expect some write ups to have the “unexpected” term in it.

    I can tell those against Maga when they say everything they can bad about results. Heard one say big slide from Q4, though we know Q1 is usually the slowest. Straight up from here.

    Liked by 2 people

  5. moe2004 says:

    What a day, MAGA bigly.

    Liked by 6 people

  6. fleporeblog says:

    Want to apologize to fellow Treeper Eric for my tone in a tweet earlier today when he questioned why I was excited by the news of real GDP coming out in the initial release at 2.3%. So happy SD wrote this post because the news is fantastic!

    I wrote the following thread earlier today:

    MAGAnomics is beginning to show up everywhere you look!

    From the article linked above:

    The Survey of Consumers, a closely-watched gauge of consumer sentiment, improved from initial estimates in April and the 2018 average is the highest in 18 years.

    The Index of Consumer Sentiment rose from initial estimates to 98.8, though that’s still slightly down from the enormously strong March reading of 101.4.

    Current Economic Conditions came in at 114.9 and the Index of Consumer Expectations improved to 88.4.

    From the article linked above:

    The U.S. economy grew at a stronger-than-expect pace in the first-quarter (1Q) 2018, according to the “advance” estimate by the Bureau of Economic Analysis (BEA). Gross domestic product (GDP) grew at an annual rate of 2.3% after increasing by 2.9% in 4Q 2017.

    THIS IS HUGE:

    Real disposable personal income rose 3.4% after gaining 1.1% in the previous quarter.

    Personal saving was $462.1 billion in 1Q, which compares with a $379.8 billion gain in 4Q. The personal saving rate — personal saving as a percentage of disposable personal income — came in at 3.1% in 1Q after a smaller 4Q 2.6% rise.

    From the WAPO article lined above:

    Since the expansion began nearly nine years ago, first-quarter economic growth has averaged just a 1.2 percent annual rate, less than half as fast as the other quarters, according to O’Sullivan of High-Frequency Economics.

    Liked by 8 people

    • fleporeblog says:

      Liked by 7 people

      • ALEX says:

        Throw this into your mix Felice. I have been waiting for these numbers
        http://www.shopfloor.org/2018/04/boosted-tax-reform-businesses-increased-capital-investments-39-first-quarter-2018/

        After months of heated debate over whether companies would hand the biggest tax break in three decades back to shareholders or reinvest it in their businesses, there’s finally some hard data.

        Among the 130 companies in the S&P 500 that have reported results in this earnings season, capital spending increased by 39 percent, the fastest rate in seven years, data compiled by UBS AG show.

        Meanwhile, returns to shareholders are growing at a much slower pace, with net buybacks rising 16 percent. Dividends saw an 11 percent boost.

        >The data is a fresh rebuttal to those who warned that hundreds of billions of dollars of tax relief will head directly to the stock market and be harvested by shareholders already fattened by a nine-year bull market. While buybacks indeed got a boost from the windfall, companies increased the rate at which they unleash cash for building factories and upgrading equipment, a strategy that’s preferred by investors for the benefit of future growth.

        Liked by 10 people

        • fleporeblog says:

          WOW 😲! I wish our President and more importantly the Republicans would run with that because it would absolutely KILL the entire Democrat narrative on why they voted against the Tax Reform Bill!

          This is HUGE!

          This will play itself out in more purchasing of equipment as well as hiring personnel once construction is completed with these expansions. Wages will continue to skyrocket in such a competitive market.

          Liked by 7 people

        • Minnie says:

          Phenomenal!!!!

          Thank you for posting!!

          Liked by 1 person

        • AH_C says:

          Agreed. There’s a ‘Laffer Curve’ for every dynamic decision. No different with whether to spend capital (invest in expansion or raises) or to spend on returns to investors

          Like

    • Minnie says:

      **WINNING**

      😆

      You’re a good man, flep 🇺🇸

      Liked by 4 people

    • Flep: How does anyone call the Obama years an “Expansion” when Inflation exceeded GDP Growth?

      http://www.multpl.com/inflation/table

      Liked by 6 people

  7. YeahYouRight says:

    I’m almost tired of winning! *Almost.*

    Liked by 3 people

  8. VeritasVincit says:

    A person would have to have his/her head in the sand up to his/her backside to not be happy about these numbers.

    Liked by 4 people

  9. GrandpaM says:

    My small business (20 employees) GDP for the first quarter was up around 3%. For the month of April it is already up over 10% and we still have 2 days left. MAGA!

    Liked by 17 people

  10. VeritasVincit says:

    By the way, I’m not very computer savvy. Would someone tell me how to change the icon the site assigned me? This thing is SO not me.

    Liked by 2 people

  11. Publius2016 says:

    I really believe CUBA IS NEXT! People want to live in prosperity and peace…Communism is dead…

    Liked by 2 people

  12. fleporeblog says:

    I absolutely agree with SD’s assessment about the 2nd Quarter! We are most likely going to see our first quarter under our Lion 🦁 come in at 4.0%+ in real GDP!

    We are going to reach an Annual real GDP for 2018 of 3% (as our Lion 🦁 said earlier about Iran never having a nuclear weapon, “You Can Take That To The BANK”).

    It will be the first time since 2004 and it will embarrass the messiah’s followers even more because BHO never reached an Annual real GDP of 3% in his 8 miserable years!

    The NY Federal Reserve just shared their first forecast for the 2nd Quarter this evening. The Atlanta Federal Reserve will do so on Monday.

    Even the POS WAPO had to scare their readers to Death 💀 about not only the 1st Quarter but what will happen in the 2nd Quarter.

    https://www.washingtonpost.com/news/business/wp/2018/04/27/u-s-economy-grew-faster-than-expected-in-first-quarter-the-first-since-trumps-tax-cuts/?utm_term=.80d0e1e353b4

    From the article linked above:

    Gains from the tax cut are likely to be stronger in the second quarter as adjusted individual withholding allowances take full effect and tax refunds hit taxpayers’ bank accounts, O’Sullivan said.

    Higher federal government spending also will make its mark with O’Sullivan expecting a second-quarter rebound to an annual rate of 3.7 percent.

    WINNING BIGLY:

    The Kansas City Federal Reserve Bank manufacturing index rose sharply in April amid optimism about future orders. “Factory activity accelerated in April despite concerns among many firms about changes in international trade policy,” said economist Chad Wilkerson of the Kansas City Fed.

    Liked by 4 people

  13. Chris Four says:

    I want to see the economy improve, but I don’t believe the US Government statisticians. The numbers have very little explanation behind them. The wage growth can be very misleading. You would need to see more information. Here is one take on what is occurring.

    “The latest ECI figures may have also been influenced by several factors. The gauge of employer costs in the first quarter is prone to surprises as it includes year-end bonuses, and the volatility may have been magnified this time by one-time payouts made by companies in response to the Republican-backed tax cuts enacted in December.”

    “Average hourly earnings, a separate monthly measure of private- sector wages that can be influenced by shifts in industry employment and hours worked, has only gradually increased. Growth in worker pay has been slow to accelerate even as the unemployment rate has fallen to the lowest level since 2000. ” Bloomberg report

    The US economy still has too many systemic problems that need to be fixed.

    Liked by 1 person

  14. Troublemaker10 says:

    Wages Rise at Strongest Pace in Nearly a Decade
    http://www.breitbart.com/big-government/2018/04/27/wages-rise-at-strongest-pace-in-nearly-a-decade/

    Excerpt:

    Compensation for American workers rose at the fastest annual pace since the third quarter of 2008, the Department of Labor said Friday.

    The employment0cost index, which measures wages and benefits for civilian workers, rose 27 percent over the past year, according to the Labor Department. In the first three months of the year the index rose 0.8 percent, a strong showing. In the last quarter of 2017, the index rose 0.6 percent.

    Liked by 1 person

    • Chris Four says:

      I think there is a major typo 2.7 not 27

      Civilian Workers
      Compensation costs for civilian workers increased 2.7 percent for the 12-month period ending in March 2018 compared with a compensation costs increase of 2.4 percent in March 2017.
      Wages and salaries increased 2.7 percent for the 12-month period ending in March 2018 and increased 2.5 percent for the 12-month period ending in March 2017.
      Benefit costs increased 2.6 percent for the 12-month period ending in March 2018. In March 2017, the increase was 2.2 percent.
      Private Industry Workers
      Compensation costs for private industry workers increased 2.8 percent over the year, a larger increase than the 2.3-percent increase in March 2017.
      Wages and salaries increased 2.9 percent for the current 12-month period and increased 2.6 percent in March 2017.
      The cost of benefits rose 2.5 percent for the 12-month period ending in March 2018 and increased 1.9 percent in March 2017.

      Liked by 1 person

  15. MAGADJT says:

    All I know is that I was called into my boss’s office yesterday and told that I was getting a 4.5% raise; other employees were receiving news of raises as well. Completely unexpected. My company usually doesn’t give annual raises. So I am one small example of the wage growth stat.

    Liked by 6 people

  16. Johnny Bravo says:

    Yep, got to give O’Mamma great credit.

    It takes a special type of moronic President to restrain the US economy so effectively, he did a great job achieving it…!

    Liked by 1 person

  17. Deplorable_Infidel says:

    Toyota to Add 400 Jobs at Corolla Plant

    https://www.ien.com/operations/news/21002688/toyota-to-add-400-jobs-at-corolla-plant

    JACKSON, Miss. (AP) — Toyota Motor Corp. announced Thursday that it will invest $170 million and add 400 jobs at its Mississippi assembly plant as it shifts some production of the Corolla sedan from Canada.

    Liked by 4 people

  18. Deplorable_Infidel says:

    Caterpillar Profit Surges on Equipment Sales

    https://www.ien.com/operations/news/21002137/caterpillar-profit-surges-on-equipment-sales

    A strong global economy helped support construction and energy projects.

    A boost in equipment sales propelled Caterpillar’s first-quarter profit, as a strong global economy helped support construction and energy industry projects. The maker of heavy equipment and machinery also greatly increased its outlook for the year, citing an upbeat global markets, better pricing and demand.

    Liked by 2 people

  19. Fools Gold says:

    Best news ever, I suffered their wage increase less than inflation since Reagan. How many years ago was that? We need another tax cut and fair trade (reciprocal that is)!

    MAGA!

    Liked by 1 person

  20. LibertyONE says:

    Have no fear…the Fed Reserve, you know the CORRUPT banksters et al will make sure to panic people by RASING interest rates to curtail any success by Pres. Trump.

    Like

  21. Perot Conservative says:

    And we had to deal with 3 massive hurricanes!

    Liked by 1 person

  22. Pete says:

    I wonder if all these positive things happening in the economy would translate into more pro-Trump candidates winning the mid-term election. I am hoping that California will turn Trump Red or Trump Gold however you want to look at it. Wishful thinking? Maybe…wouldn’t MCGA be awesome? Imagine state income and sales taxes eliminated!

    Liked by 1 person

  23. Hillyard says:

    Great MAGA economic news! This must be causing the Dems heads to explode. The crushing of their phony Russian collusion scam, the peaceful North Korea developments, the exposure of all of the criminal corruption of the Odumbo administration and seeing PDT’s poll numbers rising has to be driving the libs to record numbers of Prozac prescriptions. Perfect, this will just keep getting better through the midterms

    Liked by 1 person

  24. Don_in_Odessa says:

    Don’t look now, but all this “good news” means inflation just ahead. If the “Fed” is smart they will raise interest rates 1/2% instead of just a quarter next week.

    Like

  25. As we celebrate the accomplishments of our beloved POTUS, I would like to remind everyone of the contempt that his predecessor, BHO had for the citizens of the this country, specifically, the Blue State of NY, as evidenced by this video.

    I am sure most of you either never heard about this or else have forgotten (as I did), but on April 28, 2009, Obama scared the living crap out of millions of people by flying a 747 over lower Manhattan, as seen in this video. Even Chuck You Schumer was outraged, which is really saying something. H/T Vlad Tepes blog.

    Liked by 3 people

  26. AH_C says:

    “According to surveys, the tax cuts did not reflect on many workers’ paychecks until late in the first quarter.”

    That’s probably due to payroll tweaking their formulas for tax withholdings for a few cycles until they’ve captured all the variables.

    Like

  27. NoJuan Importante says:

    Glad you posted that bar graph. Makes everything look a lot different.

    Like

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