GDP Growth Estimates Tumble, Again

25-Mar (Wall Street Journal) — Could the U.S. economy be seeing a repeat of last year’s winter contraction? The latest estimates are moving in that direction, though they’re still in positive territory.

Several economists on Wednesday lowered their estimates for first-quarter growth in gross domestic product following a disappointing report on business spending and investment.

Orders for durable goods—products varying from computers to lawn mowers to washing machines designed to last at least three years—declined a seasonally adjusted 1.4% in February from a month earlier, the Commerce Department said. And a key measure of business investment fell for the sixth straight month, suggesting U.S. companies are still cautious about spending amid weak global demand.

Many economists said the report shows weaker-than-expected spending on equipment at the start of the year, a potential drag on economic output.

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