12-11-2017  2:49 pm      •     
MLK Breakfast
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NEWS BRIEFS

Joint Office of Homeless Services Announces Severe Weather Strategy

Those seeking shelter should call 211 or visit 211.org. Neighbors needed to volunteer, donate cold-weather apparel ...

Q&A with Facebook's Global Director of Diversity Maxine Williams

A conversation on diversity and the tech industry ...

City Announces Laura John as Tribal Liason

Laura John brings an extensive background in tribal advocacy and community engagement to the city of Portland ...

Humboldt Sewer Repair Project Update: Dec. 4

Environmental Services continues to repair more than 3 miles of public sewer pipes ...

'Santaland' on Display at Oregon Historical Society

New exhibit features Santa’s throne, Rudolph, and elves from original Meier and Frank’s Santaland ...

U.S. & WORLD NEWS

OPINION

Payday Lenders Continue Attack on Consumer Protections

Charlene Crowell of the Center for Responsible Lending writes that two bills that favor predatory lenders has received bipartisan...

Hundreds Rallied for Meek Mill, but What About the Rest?

Lynette Monroe, a guest columnist for the NNPA Newswire, talks about Meek Mill, the shady judge that locked him up and mass...

Top 10 Holiday Foods to Avoid Feeding Your Pet

Dr. Jasmine Streeter explains why pampering pets with holiday treats can be dangerous (and pricey) ...

Why We Need More Black Men in Early Childhood Education

Royston Maxwell Lyttle discusses the importance of Black male teachers in early childhood education for the NNPA ESSA Media Campaign ...

AFRICAN AMERICANS IN THE NEWS

ENTERTAINMENT

By The Skanner News

WASHINGTON (AP) — Deeper spending cuts by state and local governments weighed down U.S. economic growth in the final three months of last year.

The government's new estimate for the October-December quarter illustrates how growing state budget crises could hold back the economic recovery.

The Commerce Department reported Friday that economic growth increased at an annual rate of 2.8 percent in the final quarter of last year. That was down from the initial estimate of 3.2 percent.

The weaker figure was disappointing and prompted some economists to lower their forecasts for economic growth in the current January-March quarter.

State and local governments, wrestling with budget shortfalls, cut spending at a 2.4 percent pace. That was much deeper than the 0.9 percent annualized cut first estimated and was the most since the start of 2010.

Consumers spent a little less than first thought. Their spending rose at a rate of 4.1 percent, slightly smaller than the initial estimate of 4.4 percent. Still, it was the best showing since 2006. And it suggests Americans will play a larger role this year in helping the economy grow, especially with more money from a Social Security tax cut.

One of the crucial questions is whether consumers can spend enough this year to help offset negative forces in the economy — notably struggling state and local governments and a wobbly housing market that has depressed homes values.

Rising energy prices also pose a danger. If oil prices were to rise to $150 or more a barrel and then stay there for months, another recession is possible, economists said. Gasoline prices would near $5 a gallon. Consumers and businesses would spend much less, and some employers might slash jobs.

"Consumers stumbled a bit to start the year, and while we expect them to pick up the pace some in coming months, the recent rise in energy prices poses a notable headwind," said economist Michael Feroli at JP Morgan Chase Bank.

Overall economic growth in the October-December quarter was marginally better than the 2.6 percent pace logged in the prior quarter. The economy has steadily grown after hitting a difficult patch last spring. But rising oil prices and budget cuts by state and local government are creating headwinds.

Feroli and other analysts now predict the economy will grow at a pace around 3.5 percent in the January-March quarter. That's down from earlier estimates in the 4 percent-plus range.

Government stimulus is fading and budget cuts at the federal level could further hamper economic growth.

The federal government trimmed spending at the end of the year, entirely reflecting cuts to defense spending. And a showdown over the U.S. budget is taking place on Capitol Hill between Democrats and Republicans, threatening a government shutdown.

For all of last year, the economy grew 2.8 percent, the most in five years, according to revised figures. That was down a bit from the 2.9 percent growth first estimated a month ago. However, it was an improvement from 2009 when the economy suffered its worst decline in more than 60 years.

Still, economic growth must be stronger to make a noticeable dent in unemployment, which was 9 percent last month. The economy would need to grow 5 percent for a whole year to significantly bring down the unemployment rate. Economic growth of just 3 percent a year would hold the unemployment steady and keep up with population growth.

Looking ahead the economy is expected to grow by 3.2 percent this year, according to an AP Economy Survey.

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