Q1 2018 GDP Slips to 2.3% Annualized Growth from 2.9% in Q4 2017

​Of all economic news last week, perhaps the most intriguing are the jobless claims and GDP reports. Jobless claims fell to the lowest level since 1961, and GDP for the first quarter of 2018 slipped on consumer spending weakness.

• The Commerce Department reported last week that new home sales edged up 4% in March to a seasonally adjusted annual rate of 694,000 units. The adjusted annual rate represents the second highest reading since the Great Recession and 8.8% above the March 2017 estimate.

• After declining in March, consumer confidence has increased so far in April, according to a report from The Conference Board. The Conference Board’s Consumer Confidence Index came in at 128.7, up from March’s revised figure of 127.0. Lynn Franco, Director of Economic Indicators, said, “Consumers’ assessment of current conditions improved somewhat, with consumers rating both business and labor market conditions quite favorably.”

• For the week ended April 21st, jobless claims fell 24,000 to 209,000, according to the Department of Labor. The new level represents the lowest level of claims since 1969 and beat the analyst estimate consensus range of 225,000 to 231,000.

• The Commerce Department announced Friday that GDP for the first quarter grew at an annual rate of 2.3%. The rate is down lightly from the fourth quarter of 2017 annualized rate of 2.9% but still beat most analyst forecasts.
  

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• According to the Department of Agriculture, the Prices Received Index, an index that tracks prices received by farmers, increased 4.5% to 94.9 from February to March. The Index increased 0.9% from March 2017. Fruit and tree nuts supported price gains, and vegetables and melons supported price declines in the crop production category. Hogs supported price declines, and poultry and eggs supported price increases within the livestock production category.