They told you so. Trump and Kudlow said 2021 would be great growth for the economy. Our President told us in 2020 that the rebound would be in 2021. Now of course Biden is doing his best to kill it. Now the Atlanta Fed is projecting a 10% first quarter growth. That comes on the heels of a report Friday showing that personal income surged 10% in January. We have this from our friends over at CNBC.
Manufacturing data Monday showed the sector at its highest growth level since August 2018. That report from the Institute for Supply Management in turn helped confirm the notion among economists that output to start the year is far better than the low single-digit growth many had been predicting back in late 2020.
Questions persist about whether the $1.9 trillion spending plan from the Biden administration is necessary, at least to that magnitude. An economy poised to show its fastest annual growth pace since at least 1984 doesn’t seem like a very good candidate for more spending at a time when the federal government already is expected to run a $2.3 trillion budget deficit this year.
