Economy Growing Despite ‘Recession’ Claims by Obama, McCain

[Revmitchell]

........But according to data gathered by the government’s Bureau of Economic Analysis (BEA), the U.S.’s real GDP rose by 3.3 percent during the second quarter of FY 2008, which spanned from January 2008 to March 31. During the first quarter of 2008, which spanned from October to December 2007, the economy grew by 0.9 percent......



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[Andy T.]

Yes, we are winning the war in Iraq and the economy is improving after a typcial, normal downward cycle.

 

[JerryL]

While the U.S. gross domestic product grew at a healthy 3.3 percent clip in the April to June quarter, many analysts expect the economy to slow and possibly contract later this year, due to rising unemployment and slowing economies overseas.

Separately, this summer saw the highest level of job cuts in six years, according to a report released Wednesday by job placement consultancy Challenger, Gray & Christmas.

Employers eliminated 377,325 jobs in the May to August period, the firm said, up from 249,197 in the summer of 2007.

GMAC Financial Services said Wednesday it will lay off 5,000 workers as part of a plan to scale back its mortgage lending. GMAC is majority owned by private equity firm Cerberus Capital Management LP while General Motors Corp. holds a large stake.

Meanwhile, Freightliner LLC, a heavy truck subsidiary of German automaker Daimler AG, said last week it would cut 100 jobs.

http://www.msnbc.msn.com/id/26543248/

 

[JerryL]

A report from the Labor Department offered more evidence that the slowing economy is taking its toll on the job market, a bad sign for consumer spending. The number of workers seeking unemployment benefits jumped unexpectedly last week, reversing three weeks of declines. The number of new applications increased to a seasonally adjusted 444,000, up 15,000 from the previous week. Economists had expected claims to drop to 420,000.

The reports aren’t comforting to the retail industry as it prepares for the critical holiday season. Many merchants had entered the fall season with inventories well below a year ago, but such reductions may have not been enough as last month proved to be even weaker than planned. Dan Hess, founder and CEO of research firm Merchant Forecast, estimated that discounts are 10 percent deeper at mall-based apparel stores than a year ago, despite a drop of 10 percent to 15 percent in inventories.

http://www.msnbc.msn.com/id/26542533/

 

[Bro. Curtis]

MessNBC is so far into the Obama tank, I wouldn't trust them if they told me it was raining.

 

[JerryL]

WASHINGTON - The country is stuck in a slow-growth rut, the Federal Reserve suggested Wednesday.

Higher prices for energy, food and other things are pinching people and businesses — reasons enough for the economy to be Americans’ top concern heading into the presidential elections.

The Fed’s report on business conditions around the nation provided fresh evidence of the toll that housing, credit and financial problems are taking on the economy as a whole.

http://www.msnbc.msn.com/id/26529595/

 

[JerryL]

MessNBC is so far into the Obama tank, I wouldn't trust them if they told me it was raining.

The U.S. Labor Department said weekly jobless claims rose by 15,000 to 444,000 last week, slightly higher than the 5,000 rise expected by economists. MacroEconomic Advisors said that the ADP employment report showed that the private sector lost 33,000 jobs in August, down from a gain of 1,000 jobs in July. Economists interviewed by Thomson Reuters expected the ADP report to show a loss of 19,000 jobs.

Both of these reports lead up to Friday's all-important U.S. Labor Departments jobs report, which has the tendency to set the theme for the entire month's trading.

One the market’s early movers was the retail sector, which has been reported its August same-store sales, a key indicator for that industry, throughout the morning. Once again, the discount retailers were the only bright spot in this slumping sector, as consumers turned to Wal-Mart and Target (TGT: 54.67, -0.34, -0.61%) to save money in the face of rising gas prices and a hurting economy. Both stocks were up in early market action.

http://www.foxbusiness.com/story/markets/futures-slip-ahead-labor-reports-retail-sales/

 

[JerryL]

WASHINGTON--The nation struggled with slow economic growth and still-high prices that are weighing on consumers and businesses alike as the race for the White House kicks into high gear.

The Federal Reserve's new snapshot of business conditions, released Wednesday, underscored the toll the housing, credit and financial debacles are having on the economy and the challenges likely to be faced by the next president. Problems are expected to persist into next year.

Fed Chairman Ben Bernanke and his colleagues are all but certain to leave a key interest rate alone at 2 percent when they meet next on Sept. 16 and probably through the rest of this year.

Given the fragile state of the economy, the Fed isn't in a hurry to boost rates to fend off creeping inflation. A growing number of analysts believe the economy is likely to hit another dangerous rough patch later this year as consumers and businesses curtail their spending even more.

http://www.foxbusiness.com/story/markets/fed-consumers-businesses-struggling/