GDP Shocker: US Economic Growth Crashes To Just 0.1% In Q1

Tyler Durden's picture




 

Despite consensus at 1.2% growth QoQ, the "weather" destroyed the fragile stimulus-led economy of the US which managed only a de minimus +0.1% QoQ growth (the lowest since Q1 2011). However, as Steve Liesman noted on the heels of Mark Zandi's comments "basically ignore this number" - ok then. Spending on Services, however, surged by the most since 2000 - heralded as great news by some talking heads - but is merely a reflection of the surge in healthcare and heating costs (imagine if it had not been cold and if Obamacare hadn't saved us). As a reminder - this is the growth that is occurring as QE has run its course, as stimulus ends, and as escape velocity nears... if the "weather" can do this much damage to the US economy, should stocks really be trading at the multiple of exuberant future hope that they are?

 

Oops!

 

The full breakdown of GDP components:

And here's what everyone's favorite economist, who was off only by around 1900%, thought:

 

 

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Wed, 04/30/2014 - 08:40 | 4711376 Grande Tetons
Grande Tetons's picture

Bearish hockey sticks. 

Wed, 04/30/2014 - 08:41 | 4711381 svayambhu108
Wed, 04/30/2014 - 08:42 | 4711389 Murf_DaSurf
Murf_DaSurf's picture

 

 

 

 

No worries, World War III will bump up the number by the end of the year.

Wed, 04/30/2014 - 08:43 | 4711404 Gene Parmesan
Gene Parmesan's picture

Gotta start pushing sentiment and expectations toward desperation sooner or later.

Wed, 04/30/2014 - 08:48 | 4711417 sodbuster
sodbuster's picture

In the old days before Fraud Street was totally rigged, we would be down over 200 pts on news like this. Not anymore!! We'll be up 150 by the end of the session.

Wed, 04/30/2014 - 08:53 | 4711432 Xibalba
Xibalba's picture

Who knew that lousy weather could have such an impact on exports.

Wed, 04/30/2014 - 09:03 | 4711472 ArkansasAngie
ArkansasAngie's picture

The dad gum Ruskies aren't doing their part and buying American.  

Wed, 04/30/2014 - 09:29 | 4711601 old naughty
old naughty's picture

Ask Yellen and her newly approved vice-chair if they have any new tricks?

Wed, 04/30/2014 - 09:31 | 4711612 tmosley
tmosley's picture

Well thank Obama for broken windows.

Wed, 04/30/2014 - 13:29 | 4712780 SamuelMaverick
SamuelMaverick's picture

Truthseeker, that link was crap. If you or yours want to use the word capitalism ( in any form) , go learn what it is. I have not seen it in the USA in my lifetime. 

                   Maverick

Wed, 04/30/2014 - 09:03 | 4711474 THX 1178
THX 1178's picture

So when does the recession become official? When some extremely-smart academic functionary in a suit and tie says so? 

Wed, 04/30/2014 - 09:13 | 4711513 Xibalba
Xibalba's picture

When policy makers don't get what they want, they'll allow/orchestrate a selloff...you know, to teach you a lesson.

Wed, 04/30/2014 - 09:17 | 4711531 THX 1178
THX 1178's picture

Hmm... Luck for us THEY don't understand the cascading domino-like properties of this inextricably-linked emergently-complex HFT-algo-driven derivative-clogged world-o-finance we inhabit. One big sellofff and kaboom goes the dynamite.

I mean, The people in positions of power are too fucking stupid to understand the system, which alos means they are too stupid to know how to save it, or that it CAN'T be saved. So... good... I think.?.?.?.?.?

Wed, 04/30/2014 - 09:17 | 4711539 NidStyles
NidStyles's picture

Mark Thorton says it's a matter of comparing the Dow with the number of skyscrapers built. 

Wed, 04/30/2014 - 09:37 | 4711640 ejmoosa
ejmoosa's picture

As soon as the Republicans get control of the Senate as well.

Wed, 04/30/2014 - 08:53 | 4711430 knukles
knukles's picture

Anyone but me note that consumption was still healthy and factors like exports, investment and government were the drags, the contractions?
The contractions are by and large, not weather related.

For Fucks Sake

Wed, 04/30/2014 - 08:59 | 4711458 Save_America1st
Save_America1st's picture

simple solution:  REVISE IT! 

Then revise it again...and again...and again...and again...and again...and again...and again...

Wed, 04/30/2014 - 09:14 | 4711518 OC Sure
OC Sure's picture

 

 

 

Problem:

 Counterfeiting is the fuel of tyranny.

 

Solution: 

Enforce Chapter 6, Section 19 of the Coinage Act of 1792.

Repeal the Coinage Acts of 1965, 1873, 1864, 1857, 1849, and 1834.

Wed, 04/30/2014 - 09:14 | 4711520 madcows
madcows's picture

I'd like to know why government spending is actually part of GDP.  They have to either tax the money or borrow the money.

Wed, 04/30/2014 - 09:35 | 4711633 pods
pods's picture

And they are all hush hush on how expanding the money base fluffs the numbers.

pods

Wed, 04/30/2014 - 12:16 | 4712443 BeerMe
BeerMe's picture

GDP or Government Debt Program

Wed, 04/30/2014 - 10:30 | 4711897 kellycriterion
kellycriterion's picture

Now just imagine no tax evasion or avoidance. Where would consumption be?

Wed, 04/30/2014 - 08:44 | 4711408 SoilMyselfRotten
SoilMyselfRotten's picture

US dollar gettin bitch-slapped

Wed, 04/30/2014 - 08:47 | 4711415 Rubbish
Rubbish's picture

Luuuuuucy !!!

 

Yes, Ricky...

Wed, 04/30/2014 - 09:10 | 4711505 Squid Viscous
Squid Viscous's picture

and the Dow futures are...GREEN! wtf??

Wed, 04/30/2014 - 09:13 | 4711515 lakecity55
lakecity55's picture

It certainly does appear to be falling like a rock.

Wed, 04/30/2014 - 08:47 | 4711413 Stoploss
Stoploss's picture

.     .

  0

Wed, 04/30/2014 - 08:57 | 4711449 ElvisDog
ElvisDog's picture

World War III worries are silly. Before WW I and II the various countries had enormous standing armies ready to go. Today, the crack Ukranian soldiers have their weapons confiscated by a bunch of soccer moms and the NATO air force runs out of ammo after bombing Libya for 3 days. Can't compare the situations.

Wed, 04/30/2014 - 08:44 | 4711395 Momauguin Joe
Momauguin Joe's picture

WOAR!

Wed, 04/30/2014 - 09:23 | 4711574 jay35
jay35's picture

With GDP growth that low, we're almost certainly going to war. :(

Wed, 04/30/2014 - 08:42 | 4711382 Headbanger
Headbanger's picture

Holy fuckashit! Holy fuckashit!

Was it something we said??

Wed, 04/30/2014 - 08:43 | 4711386 Looney
Looney's picture

0.1%!!! Winnnnning!

Charlie Sheen for Treasury Secretary! ;-)

Looney

Wed, 04/30/2014 - 08:55 | 4711438 Bangin7GramRocks
Bangin7GramRocks's picture

Let's all get high and fuck!

Wed, 04/30/2014 - 09:04 | 4711476 Looney
Looney's picture

Is it OK to invite a few GIRLS for the "fucking"? ;-)

Looney

Wed, 04/30/2014 - 09:15 | 4711530 Bangin7GramRocks
Bangin7GramRocks's picture

Sure thing. Whatever hole you prefer.

Wed, 04/30/2014 - 08:56 | 4711444 BandGap
BandGap's picture

Hardly discernable from baseline noise.

Steve Liesman - ignore reality and press on.

Sigh.

Why are mining stocks hopping while PMs stagnate? Somebody knows something!

Wed, 04/30/2014 - 08:41 | 4711388 Keyser
Keyser's picture

The shill, Steve LIESman is on CNBS beating the weather aspect of the poor GDP print... Who would have guessed?

 

Wed, 04/30/2014 - 08:44 | 4711406 Headbanger
Headbanger's picture

Would somebody please just whack that wanker already!!

Wed, 04/30/2014 - 08:57 | 4711450 DavidC
DavidC's picture

HB,

What's sad is that, like Krugman, he probably BELIEVES the crap he comes out with.

 

DavidC

Wed, 04/30/2014 - 09:00 | 4711462 Cpl Hicks
Cpl Hicks's picture

I know this is a cliche but his mug shot should be in the dictionary next to "smug".

Look that up in your Funk and Wagnall's!

Wed, 04/30/2014 - 09:49 | 4711709 SAT 800
SAT 800's picture

"The New Normal".

Wed, 04/30/2014 - 08:41 | 4711378 Kilgore Trout
Kilgore Trout's picture

Liesman is the spittle on Greenspan's lower lip.

Wed, 04/30/2014 - 09:06 | 4711483 BandGap
BandGap's picture

Getting warmer......

Wed, 04/30/2014 - 08:40 | 4711379 Sudden Debt
Sudden Debt's picture

GODLY GOLDMAN MISS!!!

Wed, 04/30/2014 - 09:21 | 4711558 Bangin7GramRocks
Bangin7GramRocks's picture

But somehow massive multinational companies that do business in dozens to hundreds of countries can match estimates to the fucking penny every quarter. And none of you feces flingers on Wall Street ever question the bullshit!

Wed, 04/30/2014 - 09:54 | 4711742 SAT 800
SAT 800's picture

Not, bad; not bad at all. Your English witticisms are improving.

Wed, 04/30/2014 - 08:41 | 4711380 Neethgie
Neethgie's picture

SPAIN IS NOT AMERICA

Wed, 04/30/2014 - 08:48 | 4711419 Sudden Debt
Sudden Debt's picture

That's what you say!

In both the mayority speaks spanish!

Wed, 04/30/2014 - 09:55 | 4711749 SAT 800
SAT 800's picture

Somebody had their Coffee this morning.

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