U.S. GDP Grew at 4.0% in Q2

Discussion in 'News / Current Events' started by InTheLight, Jul 30, 2014.

  1. InTheLight

    InTheLight
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    (Reuters) - U.S. economic growth accelerated more than expected in the second quarter and the decline in output in the prior period was less steep than previously reported, bolstering views for a stronger performance in the last six months of the year.

    Gross domestic product expanded at a 4.0 percent annual rate as activity picked up broadly after shrinking at a revised 2.1 percent pace in the first quarter, the Commerce Department said on Wednesday.

    That pushed GDP above the economy's potential growth trend, which analysts put somewhere between a 2 percent and 2.5 percent pace. Economists had forecast the economy growing at a 3.0 percent rate in the second quarter after a previously reported 2.9 percent contraction.
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    Hmmm....seems there was some discussion about this about a month ago.

    http://www.baptistboard.com/showpost.php?p=2121302&postcount=12
     
  2. thisnumbersdisconnected

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    You might investigate where that growth occurred. It was not amongst manufacturing and industry that creates a lot of jobs the busier they get. It is among the tech firms, which don't need to hire and expand growth primarily on paper. The GDP's increase is an empty promise. It won't result in jobs or business. It only serves to make the techies richer.

    Good for the economy does not necessarily mean good for the people. GDP is the total economic output of a nation. But when that wealth is concentrated in companies that don't spend on hiring, expansion, etc., there is no real benefit to "growth." It is only growth on paper, not growth that creates supply, increases demand and boosts the overall economy. GDP is not reliable when it comes to calculating the quality of life. Unemployment, a quality public infrastructure, and living wages are among the things that are reliable.
     
    #2 thisnumbersdisconnected, Jul 30, 2014
    Last edited by a moderator: Jul 30, 2014
  3. InTheLight

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    Predictable response and erroneous.

    The growth occurred because of major gains in inventories for private businesses as well as exports and personal consumption spending that added to the growth. Increases in consumption were driven by a surge in durable goods consumption. He also said state and government spending picked up.

    Aside from inventories, the other major driver of expansion in the spring was from personal consumption expenditures. This accounts for around two-thirds of the economy, so it unsurprisingly accounted for the majority of economic growth.

    Within personal consumption, the growth was broad, coming both from durable goods (like cars), nondurable goods (like clothing) and services (like health care). Meanwhile, business investment and housing investment were both positive but modest.


    http://www.nytimes.com/2014/07/31/business/economy/us-economy-grew-4-in-second-quarter.html

    http://qz.com/242453/us-gdp-chartbook-all-the-numbers-you-need-to-see/
     
  4. thisnumbersdisconnected

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    Consumer spending, not actual industrial and manufacturing growth. Again, taking on debt and buying big ticket items is nice, but it can't be sustained.
    Sorry, ITL, you can disparage my response as "typical and erroneous" all you want. This is not a recipe for a health economy. Keep in mind, the GDP represents nothing more than a potential growth trend. It doesn't indicate actual growth, industrial, manufacturing, investment or consumer confidences.
     
    #4 thisnumbersdisconnected, Jul 30, 2014
    Last edited by a moderator: Jul 30, 2014
  5. InTheLight

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    Businesses increased inventories. How did they do that? By magic? Hint: They increased inventories by MANUFACTURING more goods. Why? Because they can read that consumer confidence and consumer SPENDING is up and they don't want to be caught short.

    Increases in consumer spending is not a recipe for a healthy economy? LOL!

    Where was there any mention of consumers taking on debt?

    Wrong again. GDP is a measurement of the past historical output of economic activity, not a potential growth trend. It does indicate actual growth.
     
  6. righteousdude2

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    Who's Drinking the Kool Aid Now?

    http://www.huffingtonpost.com/2014/...id7|htmlws-main-bb|dl41|sec3_lnk3&pLid=509041

    Sorry brother. When I saw this article in my morning paper, I immediately thought of you, and guess what? You didn't let me down!

    Let me just say this .... it the GDP grew by 4%; it would be like the king and his new clothes. Someone is being sold a bill of goods, as I have not seen anything in the southern California area to indicate this country's GDP is suddenly 4%.

    It is an election year, and the Dems need to muster up some good news in an attempt to gain back the votes they are losing due to a depressed economy, all the scandals, and a POTUS who is MIA!

    If you want to believe this, that is surely your right, and far be it for me to rain on your parade. However, I would like to point out just one big whopper of a lie this administration has already been guilty of making, and that was the fiasco with the rollout of Obamacare!

    It was being hailed as a success, even when it was in deep trouble. You should be smart enough ITL, to know that anyone good with numbers and statistics, can make any growth look like more than it really is!

    Sorry, but I am not drinking the kool aid on this one, because all I have to do is drive down the main street of any city in this region, and I will see panhandlers begging for money; businesses that were thriving in 2006, closed down and boarded up; our newspaper, which used to have three to four full pages of job opportunities each day, barely getting enough notices to fill p a quarter of one page; I drive by the California Employment Development Department, and the lines looking to get in to file a claim and look for jobs, is usually around the corner and down the street; more dollar stores then ever before; once thriving middle class restaurants, no longer in business; and I can continue. Even once thriving auto dealership, have half-empty parking lots. lots that six years ago, were filled bumper-to-bumper with new cars waiting to be sold!

    They are building tons of where houses around here, but strange enough; they've been sitting empty for years; I heard from a friend who is a city councilman that the where houses being built an office building being built are empty and earning the owner's good tax right offs at the end of the year! Don't get me wrong, it is impressive to see row and rows of 100,000 square foot buildings waiting to be occupied, but there are now tears right now!

    In the city I live, the Target store and shopping center with 20 screen movie theater is still coming, 10 years later. The Costco the city bragged about getting is still on hold, on hold for 5 years now! Anyone willing to believe the government's recent growth report, especially 4%, is double dipping in the kool aid bowl! :smilewinkgrin:
     
    #6 righteousdude2, Jul 31, 2014
    Last edited by a moderator: Jul 31, 2014
  7. thisnumbersdisconnected

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    Yesterday, Commerce announced an admittedly questionable claim the GDP for Q2 was 4.0%

    Today, the markets are uniformly down, the Dow by over 200 points at the time of this post. The reason: Concerns about Russian and Gaza.

    So much for the importance of the GDP.
     
  8. carpro

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    In spite of the obstacles Obama has placed in the way and no matter how hard he tries to penalize initiative and punish entrepreneurs, our economic engine keeps trying to recover.

    It's amazing!
     
    #8 carpro, Jul 31, 2014
    Last edited by a moderator: Jul 31, 2014
  9. thisnumbersdisconnected

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  10. Alcott

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    GDP? Does that have anything to do with Obama's church and Jeremiah Wright?
     
  11. thisnumbersdisconnected

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    Pardon me while I go off in a corner and groan. :thumbsup:
     
  12. InTheLight

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    Manufacturing expanded in July at the fastest pace in more than three years, showing U.S. factories will help power the economy after a second-quarter rebound.

    The Institute for Supply Management’s index increased to 57.1, the highest since April 2011, from 55.3 a month earlier, the Tempe, Arizona-based group’s report showed today. Readings above 50 indicate growth. The median forecast in a Bloomberg survey of economists was 56.

    Orders and production expanded last month at the fastest pace of the year as factories responded to increased purchases of automobiles and business equipment.


    http://www.businessweek.com/news/20...-s-dot-expands-at-fastest-pace-in-three-years


    A more upbeat mood among U.S. consumers offers the latest evidence that the economy may be picking up after little growth in the first half of the year.

    The Conference Board, a private research group, said its index of consumer confidence rose to 90.9 in July from 86.4 in June, This month's reading is the highest since October 2007, just before the last recession, and well above the 85.0 expected by economists surveyed by The Wall Street Journal.


    http://online.wsj.com/articles/u-s-consumer-confidence-rises-1406647261?mod=_newsreel_5
     
  13. righteousdude2

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    Job numbers released today, August 1, do not suport the excitement of the OP!

    https://www.youtube.com/watch?v=7r9fdqjoI2k

    I tried to telll you Wd, but you were too much into that number 4% to listen! That 4% is an inflated number, spun off one of Obama's wishful thinking fund raising tours! Maybe he ws referring to his fund raising number showing a hefty 4% increase? :laugh:
     
  14. Crabtownboy

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    A fair amount of the growth was in jobs requiring a college or a masters degree. We live in an advanced technological country. If you want good jobs you'd better get a good education. Long ago, when I was a teenager, an elderly wise man in the country church I attended said to me, "Get all the education that the average college kid is getting and then a little bit more."

     
  15. righteousdude2

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    One more time....

    Are you a preacher or an arm chair quarterback?
     
  16. Revmitchell

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    The economist I saw this morning in the news said that the loss of Friday was a result of talk of raising intrest rates. This is because everyone knows that there is no real sustainable growth in the market right now. It is likely what ever growth we saw in the last quarter will not sustain itself and drop the rest of the year.

    Everyone should be very cautious in the markets right now.
     
  17. InTheLight

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    Thursday and Friday was a sell off for profits. One thing that everyone knows is that interest rates will increase. It's not a surprise and it's not going to move markets very much, until the actual announcement is made. Market movement on that day will depend on the amount of the increase.

    I wish I had been collecting these predictions over the past couple of years. They've all been wrong.

    Always good advice.
     
  18. thisnumbersdisconnected

    thisnumbersdisconnected
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    Only if one takes it.
     
  19. Crabtownboy

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    1 Always be cautions
    2 Do your own homework, your own research
    3 Never buy or sell just because a broker tells you to
    4 Remember on the best of days there are issues that go down and on the worst of days there are issues that increase. [/size]

    5 Let your profits run and cut your losses short!
     
  20. church mouse guy

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    And import a lot of cheap labor so you can live large and your stock market earnings will buy you a lot of cheap servants. You should never have to do anything around your own home if we can get enough cheap labor.
     

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