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...
What You Need to Know Today: Excitement over China’s agreement to purchase $17 billion of U.S. ag commodities subsided, as traders are cautious amid the yet-unspecified allocation of those purchases. Monday’s Crop Progress report did not significantly change the narrative for corn...
There has been more analysis of the Trump-Xi meeting last week than decades worth of papers written on the fall of Rome and the assassination of JFK. Optimists highlight the pageantry and showmanship; pessimists complain nothing major was accomplished. The divergence of the official assessments...
As WPI reported, Presidents Trump and Xi held a bilateral summit last week (World Perspectives), the first since 2017, with some uncertainty over the outcome, though Trump commented on some “fantastic” trade deals. Over the weekend, more information was released on those agreements,...
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.