Real GDP dipped at a -0.3 percent annual rate in Q1, the first decline for any quarter since 2022. However, the main reason was that trade with other countries accounted for the largest drag on the economy for any quarter since at least 1947, as both consumers and companies loaded up on goods from abroad before higher tariffs kicked in. Since GDP is designed to measure domestic production, imports are subtracted even though Americans buy those goods because they were produced abroad. Real (inflation-adjusted) consumer spending increased at a moderate 1.8 percent annual rate in the first quarter and real business investment in equipment spiked up at a 22.5 percent annual rate, neither of which looks recessionary. “Core” GDP...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.