Just noise ... weather related noise
Posted on 06/25/2014 5:47:58 AM PDT by kristinn
The U.S. economy contracted at a much steeper pace than previously estimated in the first quarter, but there are indications that growth has since rebounded strongly.
The Commerce Department said on Wednesday gross domestic product fell at a 2.9 percent annual rate, the economy's worst performance in five years, instead of the 1.0 percent pace it had reported last month.
While the economy's woes have been largely blamed on an unusually cold winter, the magnitude of the revisions suggest other factors at play beyond the weather. Growth has now been revised down by a total of 3.0 percentage points since the government's first estimate was published in April, which had the economy expanding at a 0.1 percent rate.
The difference between the second and third estimates was the largest on records going back to 1976, the Commerce Department said.
Economists had expected growth to be revised to show it contracting at a 1.7 percent rate. Sharp revisions to GDP numbers are not unusual as the government does not have complete data when it makes its initial and preliminary estimates.
(Excerpt) Read more at foxbusiness.com ...
Congress needs to request emails between Commerce and the White Hut before the hard drive crashed.
“There are indications that growth has rebounded sharply”
Yeahhhh that’s the ticket.
Just noise ... weather related noise
Housing has been selling like hotcakes. There’s a puzzling disconnect with the economic growth number.
Yeah, so they release a modified -2.9% so what’s it really? -5%?
Not if one believes in cause and effect...
It was in this revision contributed -1.3%
The economy is coming back, it’s just very uneven and erratic. Every retailer I talk to says it’s like a wave, up and then down and then up and then down, but better.
I regularly see retailers from KFC to HHGreg with handmade signs and employees standing with them on roadside announcing some daily special. That’s scary.
On the upside, whichever party wins the presidency is in for a boom time. If it’s a Democrat or GOPe it will be muted, but if it is a real conservative, it will be a long and wonderful boom. All you need to do is hold the budget to zero increase, lower cap gains taxes back to 10% or zero it out, get corporate taxes down to below 20% (again zero is the correct number, but libs will go nuts), and end all the red tape that’s burdening energy and business formation. That can be done with a GOP House, Senate and conservative POTUS.
Once the economy booms...
Yeah. That's it, "the weather".
And it that excuse fails, we can always blame foreign spies, Kulaks, capitalist wreckers, and Hooligans...
No, they’re trying to manage the economy with Coke bottle glasses and a Martini.
The revisions are scheduled far ahead of time. So you have it for your calendar:
Q2 1st estimate will be July 30th
Q2 2nd estimate will be August 28th
Q2 3rd estimate will be September 26th
That and +600K job growth during the quarter. That is completely incongruent with a GDP number like this.
That quarter saw decreased sales, consumer spending, and contracting supplies while at it was higher government spending at the same time.
So, the government took more away from an economy that was generating less.
Is it any wonder they blame the weather? If I remember my history, the more an economy gets taxed, the less business it generates. They were bragging a few weeks ago about record setting tax receipts.
As a single person household, my typical weekly grocery bill ran about $28 three years ago. Last year it was around $40. More recently, it has been around $60.
Many food item prices have jumped 25% or more, and many of those have also been the afflicted with product shrinkage.
I’m still bitter about the 39 Oz. cans of Maxwell House coffee being reduced to 28 Oz. plastic jars.
I’m stocking up on their 100% Columbian due to S. American coffee fungus and other stuff. The 28 Oz. jars were $6.78 at WM last weekend. I like to have a 6 month supply to wait out the spikes.
Agree with that completely. Ditto for all the other regulations and tax laws. It is the most anti-business environment in American history.
So let’s see. Any bets on how this gets blamed on Bush?
Sheesh you’ld have thunk with everyone saving 2,500 dollars on their new government imposed healthcare the economy would have gone crazy with all the personal expendable income
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.