In Trump’s first quarter back in office, he managed not only to slow government purchases, but to decrease them slightly—the first time in three years. That shows up as a subtraction to GDP.
But here’s the showstopper: investment (the impetus of long-run real economic growth) soared, up 22% at a seasonally adjusted annualized rate. This is the rocket fuel for future growth that America needs. This was the opposite of tepid business investment under Biden.
On balance, a quarter with surging investment and slowing government is not bad at all.
