Economic Problems Lie Beneath Strong Numbers

Published by
The Street

By Dan Weil The removal of fiscal and monetary stimulus will weigh on the economy this year, after it soared 6.9% in the fourth quarter. The economy ran hot in the fourth quarter, with annualized growth hitting 6.9%. That pushed growth for all of 2021 to 5.7%, the strongest since 1984. But some problems surfaced behind the numbers. Most of the growth stemmed from companies increasing their inventories to deal with supply chain disruption. Excluding inventories, GDP expanded only 1.9%. Consumer spending has pulled back from the torrid pace of the first half of 2021, rising 3.3% in the fourth qu…

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