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Reuters: Economy Finds Momentum (GDP Down)

From a completely shameless Reuters:

U.S. economy finds momentum in Q2, further gains seen

By Lucia Mutikani | July 31, 2013

WASHINGTON (Reuters) – U.S. economic growth unexpectedly accelerated in the second quarter, laying a firmer foundation for the rest of the year that could bring the Federal Reserve a step closer to cutting back its monetary stimulus.

Gross domestic product grew at a 1.7 percent annual rate, the Commerce Department said on Wednesday, stepping up from the first-quarter’s downwardly revised 1.1 percent expansion pace

This is media mendacity at its finest. This is the same old trick the administration and their media minions do with the unemployment claims and jobs numbers. They compare unrevised numbers to revised numbers.

In this case, up until this morning, we had been told the GDP for the first quarter was 1.8%. It had been originally reported to be 2.4%. And that number was shouted from the rooftops. But it was quiestly revised down to 1.8% last month.)

But now they are using this newly revised figure of 1.1% for for the first quarter to pretend that this second quarter GDP report is great news. In fact, if things run true to form, this 1.7% will be quietly revised down several times in the coming weeks.

But we won’t ever hear about it until the next new GDP report. And then it will only be mentioned in passing.

A rebound in business spending, export growth and a sharp moderation in the pace of decline in government outlays boosted economic growth in the April-June period, offsetting a slowdown in consumer spending and a steady rate of inventory accumulation.

This is a ‘boost’? Remember, under President Bush, a 3.3% GDP was called ‘signs of a recession’ by our one party news media.

Still, the report marked a third straight quarter of GDP growth below 2 percent, a pace that normally would be too soft to bring down unemployment.

And given that inflation is at least at 2% and probably worse, this means the economy is standing still at best. But this is supposed to be "the economy finding its momentum."

But growth was poised to gain even more momentum in the second half of the year as the fiscal burden brought on by belt-tightening in Washington eases…

Huh? They are talking about the sequester cuts. How have they eased? But is this what Reuter means by "signs of further gains"?

But wait, Reuters is not done blowing smoke:

SILVER LINING IN REVISIONS

Adding to the better tenor of the report, comprehensive revisions to the data cast the economy in a better light than previously.

The government has implemented some changes in how it calculates GDP. For example, research and development spending will now be treated as investment, and defined benefit pension plans will be measured on an accrual basis, rather than as cash.

In other words, once again the Obama administration is changing the traditional economic standards to try to make themselves look better.

Economic growth was relatively stronger between 2009 and 2012 than previously reported. In fact, the economy grew 2.8 percent last year, 0.6 percentage points faster than the government had previously estimated…

Under these newly revised yardsticks. But this is what Reuters calls a "silver lining." If you change the way you measure things and get a better number, that is a ‘silver lining’ to their minds.

Higher taxes, as Washington tries to shrink the government’s budget deficit, constrained consumer spending in the second quarter, keeping the economy on an anemic growth pace…

What’s this? Higher taxes are keeping the economy at an anemic pace? Luckily they buried this admission so far down in their article, few people will ever see it.

This article was posted by Steve on Wednesday, July 31st, 2013. Comments are currently closed.

2 Responses to “Reuters: Economy Finds Momentum (GDP Down)”

  1. GetBackJack says:

    Yesterday’s Headline: 4 Out Of 5 Adults Out Of Work, Facing Poverty
    Today’s Headline: Economy Finds Momentum

    .. buried in the numbers .. 1.1% Growth Rate revised to 1.7%.

    Break out the champagne, lads!

  2. Petronius says:

    “offsetting a slowdown in consumer spending and a steady rate of inventory accumulation.”

    Sounds like the American consumer has just about maxed out his credit cards.


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