MA’s Monthly GDP Measure Flat in December

Monthly GDP was essentially flat in December on the heels of a sharp, 1.0% increase in November.  The December reading reflected positive contributions from domestic final sales (PCE and nonresidential fixed investment) and net exports that were essentially offset by a decline in nonfarm inventory investment from an unsustainable level in November.  The level of GDP in December was 1.4% above the fourth quarter average at an annual rate.  Implicit in our latest GDP tracking is a small decline in GDP in January followed by increases over February and March that average 0.2% per month (not annualized).   Click here for more information on MA’s Monthly GDP measure.

MA’s Joel Prakken Quoted in St. Louis Post-Dispatch

MA’s Joel Prakken was quoted in the article, “Curbing immigration will hurt the economy” by David Nicklaus of the St. Louis Post-Dispatch (excerpts shown below). “Joel Prakken, senior managing director at Macroeconomic Advisers in Clayton, says most research shows that immigration helps the economy by increasing the working-age population and by boosting productivity.” Some of the productivity increase comes from skilled immigrants who invent things — people such as Google co-founder Sergey Brin and Tesla founder Elon Musk. It also comes from specialization: As employers hire immigrants for routine tasks, native-born employees move into jobs that make use of their language and communication skills. “You get a larger and more flexible workforce, and you get a larger economy,” Prakken said. “If you told me right now, ‘No more immigrants,’ I would cut my forecast for economic growth dramatically.” (click her for article)