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Second Quarter GDP ‘Revised’ Down To 1%

From CNN’s Money.Com:

Economy: ‘Slowdown is here to stay’

By Ben Rooney @CNNMoney August 26, 2011

NEW YORK (CNNMoney) — Economic growth in the second quarter was slightly weaker than previously estimated, according to revised U.S. government data released Friday.

Gross domestic product, the broadest measure of the nation’s economic health, rose at an annual rate of 1% in the second quarter, the Commerce Department said.

In July, the government estimated that GDP rose 1.3% in the second quarter.

Isn’t it funny how these numbers are always revised down under Mr. Obama. Under Mr. Bush they were usually revised up. Of course we seldom heard about that, either.

Economists were expecting the rate to be revised down to 1.1%, according to consensus estimates from Briefing.com…

Imagine, economists getting it wrong.

The revised rate comes after the economy expanded at a meager 0.4% pace in the first-quarter.

Economic activity in the first half of 2011 has been much weaker than many had anticipated at the start of the year.

Just think of what the US GDP would be if government spending were taken out of the calculations. Which, in a saner world, they would be, since government spending actually takes money out of the real economy.

In the first quarter, economic growth was stifled by temporary factors, including supply disruptions stemming from the Japan earthquake and a spike in gasoline prices following the Arab Spring political uprisings.

But the malaise seems to be taking hold, with consumers pulling back sharply in the second quarter.

So now it is the consumers’ fault.

Overall, consumer spending, which accounts for roughly 70% of gross domestic product, picked up only 0.4% in the second quarter. That was slightly better than the initial 0.1% estimate, but marks a significant slowdown from growth of 2.1% in the first three months of the year…

Lest we forget, the news media constantly attacked consumers during the evil Bush years for spending too much.

Despite the decline in overall output, the revised data contained some positive signs, according to Paul Dales, a senior economist at Capital Economics.

He said the downward revision largely reflects a decline in trade data and a slowdown in restocking of business inventories.

In addition, he said the report showed an increase in private investment and a strengthening of "final sales to domestic purchasers." …

Right. After all, who can doubt that a 1% GDP is great news?

The irony is, despite all the hype about Hurricane Irene, the real catastrophe going on in America is the economy.

And it is easily a Category 5.

This article was posted by Steve on Monday, August 29th, 2011. Comments are currently closed.

5 Responses to “Second Quarter GDP ‘Revised’ Down To 1%”

  1. GetBackJack says:

    “There are two ways to conquer and enslave a nation.

    One is by the sword. The other is by debt.”

    John Adams 1826

  2. Rusty Shackleford says:

    Welcome to Obama’s “new normal”

  3. JohnMG says:

    Unexpectedly, right?

  4. proreason says:

    Just a reminder of what a fraud GDP is.

    It includes gubamint spending.

    Now, Obamy has increased the federal budget by 1 trillion dollars (7% of GDP). Do ya think that might have an eentsy tiny impact on GDP?? yep, it increases GDP by 7%.

    So to compare GDP now to 2008, SUBTRACT 7%.

    Why is this important? Because GDP is what the government liars use to say whether or not we are in a recession. Well, according to this lie, we aren’t. But according to reality, we aren’t in a recession we are in a depression, because when the private sector economic activity is down significantly for an extended period of time, that’s a depression. It’s not nearly as bad as the Great Depression, but it’s still bad.

    But that’s not bad enough. All of the additional 1 trillion in gubamint spending IS BORROWED MONEY. The shit really hasn’t hit the fan yet. That comes later.

    And you better believe that when the next Republican president has to climb out of that massive hole, the marxists will be demagogueing it until the cows come home.

    • JohnMG says:

      Bernanke says we’ll just print more money, and we’ll hold the prime rate at near zero for the next two years, and everything will be all peachy. And don’t forget that fuel and food prices aren’t factored into the CPI for inflationary purposes.

      These people are criminals of the worst order. When the crap does hit the fan, they’ll be safely ensconced somewhere out of our (my?) reach. Or so they think. They have no idea of the ire they have bred.

      Cardinal rule of poker: Never take all an opponent’s money. Always leave him something, for he’s most dangerous when he has nothing leftg to lose. Payback’s a bitch!

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