As reported moments ago, Q1 GDP which came at just 0.5% growth, was a lousy number in which virtually every component besides personal spending (and government) subtracted from growth. In fact, in nominal terms, Q1 GDP grew only $22.2 billion annualized, of which personal consumption was more than double, or $52.5 billion.
But what did Americans spend money on in Q1? To our surprise, Healthcare, Obamacare was no longer what soaked up most Americans’ cash in the first quarter (nonetheless, it was a runner up with $10.8 billion in spending).
So what did they spend the most amount of money on? The answer, drumroll…. Recreational goods and vehicles. Not cars, which actually were a huge negative to Q1 GDP growth, reducing the headline consumption number by $13.4 billion nominal, but recreational vehicles, and other sundry related goods, which amounted to to $11.3 billion in Q1 spending.
It appears that after spending record amounts of money on their health insurance premiums, US consumers just can’t get enough of various “recreational” distractions such as RVs, ATVs and jet skis, and have made “recreation” the biggest source of growth in the US economy. Incidentally, net of other items, the entire Q1 GDP growth was covered solely by spending on Healthcare and Recreational goods and vehicles.
Summarizing the Obama economy: health insurance and jet skis, for waiters and bartenders.
Here is the full breakdown.
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