U.S. Economic Growth Slows In Q1, But Annual Pace Quickens

By RJS, a rural swamp denizen from Northeast Ohio, and a long-time commenter at Naked Capitalism. Originally published at MarketWatch 666.

Eurozone retail sales fell only slightly this month, but it was the 5th consecutive month, and the worst quarter since the 1st quarter of 2010. Please consider Markit Eurozone Retail PMI® March 2012.

WASHINGTON (Reuters) - The U.S. economy likely grew at its slowest pace in nearly two years in the fourth quarter as businesses added less stock to their warehouses and government spending fizzled, setting it up for a difficult start in 2013. Gross domestic product probably expanded at a 1.1 percent annual rate, braking sharply from a 3.1 percent clip in the third quarter, according to a Reuters poll of economists. That would mark the weakest growth pace since the first quarter of 2011 and it would show the economy entering the new year with little momentum.

"Unexpected" weakness and downward revisions are hallmarks of the beginnings of recessions. And so it it with durable goods. Economists had forecast a gain, instead there was a 1.6% drop. Moreover July was revised lower as well.

James Picerno submits: Last year’s fourth quarter rise in GDP wasn’t as strong as initially estimated, the U.S. Bureau of Economic Analysis reports. That’s discouraging for all the usual reasons, along with the fact that the economy needs all the momentum it can muster if there’s an oil shock coming, courtesy of the turmoil in the Mideast.

James Picerno submits: The U.S. economy expanded at an annualized 2% in the third quarter, the Bureau of Economic Analysis reports. The rate of GDP increase for July through September is up slightly from Q2’s 1.7% pace, but still well below the 3.7% logged in this year’s first quarter or the robust 5.0% reading from last year’s final three-month stretch.

By Eric Sprott of Sprott Global Ignoring The Obvious Not a day goes by without hearing about the fiscal cliff, the debt ceiling or another political deadlock. We would not disagree that some of these are important issues that need resolving but, in the grand scheme of things, they are relatively superficial.