Economic growth tepid as spending flat (Unexpected alert!)

http://www.reuters.com ^ | WASHINGTON | Fri Jul 29, 2011 8:39am EDT | By Lucia Mutikani

[Red Badger]

The economy grew less than expected in the second quarter as consumer spending barely rose amid higher gasoline prices, and growth braked sharply in the prior quarter, a government report showed on Friday.

Growth in gross domestic product -- a measure of all goods and services produced within U.S. borders - rose at a 1.3 percent annual rate, the Commerce Department said. First-quarter output was sharply revised down to a 0.4 percent pace from 1.9 percent.

Economists had expected the economy to expand at a 1.8 percent rate in the second quarter.

In addition, fourth-quarter growth was revised down to a 2.3 percent pace from 3.1 percent, indicating that the economy had already started slowing before the high gasoline prices and supply chain disruptions from Japan hit.

Economists had expected the economy would show signs of perking up by now with Japan supply constraints easing and gasoline prices off their high, but data has disappointed. This and the sharp downward revisions to the prior quarters suggest a more troubling and fundamental slowdown might be underway.

There is also heightened uncertainty over the outlook because of the impasse in talks to raise the nation's borrowing limit and avoid a damaging government debt default. [snip] Economists have warned that a debt default could push the fragile economy over the edge.

"The implications of more rancorous foot dragging would be bad for an economy already in a precarious state," said Julia Coronado, chief North America economist at BNP Paribas in New York. "Uncertainty continues to tax an already fragile recovery."

Data released on Friday showed the 2007-2009 recession was much more severe than prior measures had found, with economic output declining a cumulative of 5.1 percent instead of 4.1 percent.

[Red Badger]

EXPECT THE UNEXPECTED.....................

[jpsb]

And inflation was what? 3-5 percent? Sounds more like no growth to me.

[all the best]

“The economy grew less than expected in the second quarter as consumer spending barely rose”

Consumer spending barely rose because the economy grew less than expected.

[Marty62]

Anyone remember when Venezula had a 400% inflation rate?

[Red Badger]

First-quarter output was sharply revised down to a 0.4 percent pace from 1.9 percent.

IOW they lied to us BIGTIME about the 1st quarter!......hoping the next quarter would erase their crime!..............

[GailA]

Between the cheap made, lead loaded china made crap that won’t go through 2-3 cleanings with out unraveling, why should I spend what few extra $$ for such garbage, and it is not even my age related in clothing.

[Red Badger]

I remember it like it was yesterday...................wait a minute....It was YESTERDAY!................

[zavvone]

Who are these economists? They never get it right. How do any of them still have jobs?

[randita]

Any economic growth whatsoever is the past two years has been due to government pumping. The pumping has stopped and at least for the time being, QE has stopped.

If or when the government credit card is cut off, these numbers are going to go negative for a long time. Has to be done, but it’s going to be the pits for everyone for a long time.

[spokeshave]

This and the sharp downward revisions to the prior quarters suggest a more troubling and fundamental slowdown might be underway.

0banomics leads to .....0bamageddon.

[Red Badger]

We shop Salvation Army, Goodwill, Waterfront Mission store almost every weekend. There are crowds,,,,,,,,,,,,

[Red Badger]

Who are these economists? They never get it right. How do any of them still have jobs?

They are government workers..............

[spokeshave]

Who are these economists? They never get it right.

Economics....the subject who's trivia quiz....

Has 400 questions

.....and a thousand answers.

[Siouxz]

In other news, chocolate rations are up. Does anyone believe these numbers? This is a damn depression.

[Red Badger]

The government is a big part of the problem that you never hear about.
The US Government is SUCKING UP ALL THE CREDIT WITH OBAMUGABE’S FREE SPENDING POLICIES!
When the government is taking away all the credit $$$ there is little else for anybody to use to make investments in plants and equipment..............

[magellan]

And I expect last week's unexpected drop in unemployment to 398,000 to be revised up above 400,000.

[Perdogg]

like meteorologists..

[Red Badger]

Wow! You must be psychic!..............

[mtthw2]

This is just cover for QE3. Watch for this announcement soon.

[kittymyrib]

Putting lipstick on the pig, they had to doctor last month’s number, knocking a stunning 1.5% off, so this month’s pathetically anemic number would look like an improvement. Who believes this bunch of liars, after all the phony numbers they’ve fed the press since BO’s immaculation?