Weekly Economic Update: May 1 - May 5, 2017

May 01, 2017

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CHART OF THE WEEK

Which Policies Help Businesses Grow and Create Jobs?

Last week’s disappointing GDP report was a reminder that our economy needs pro-growth policies. But which policies are a priority for America’s largest employers? The Business Roundtable’s CEO Economic Survey for the first quarter of 2017 asked CEOs which policy reforms would most enable them to produce more, create more jobs, and increase investment. Nearly 80% of CEOs cited tax and regulatory reforms as a priority.

LAST WEEK

News and Commentary Weekly Highlights

Wall Street Journal: U.S. GDP Growth Slowed on Tepid Consumer Spending

E21: President Trump Gets Serious About Tax Reform

E21: No, New York Times: Bush’s Tax Cuts Did Not Disappoint

Life Science Daily: Lawmakers support proposed healthcare payment rules

Top Economic Indicator Highlights

Gross Domestic Product (First Quarter 2017—Advance Estimate)

Real GDP, change from previous quarter at seasonally adjusted annualized rate

Q1-2017: 0.7% Q4-2016: 2.1% Q3-2016: 3.5% Q2-2016: 1.4% Q1-2016: 0.8%

Noteworthy: Warmer weather in January and February reduced heating fuel spending, which slowed consumer spending. March’s bad weather may also have contributed to slower GDP growth. A bright spot was that investment (excluding inventory investment) was unusually robust due to increased energy-related investment and residential investment. Also noteworthy is the tendency of Q1 GDP growth to be unusually tepid during this recovery. Since 2010, Q1 real GDP growth has averaged 1%. The Q2, Q3, and Q4 averages are 2.5%, 2.5%, and 2.3%, respectively. The Bureau of Economic Analysis (BEA) is investigating the reason for this phenomenon.