Posted on 09/28/2015 1:58:13 PM PDT by blam
Elena Holodny
September 28, 2015
The US economy grew at a 3.9% pace in the second quarter.
The Bureau of Economic Analysis noted that the rise in the GDP was led by consumer spending on healthcare, food services, and accommodation.
But notably, the good news about US consumers comes at a time when the rest of the global economy isn't doing so great.
Those concerned about the US economy are inevitably wondering which has the bigger incremental effect on growth: the healthy US economy or the ailing international economy?
In a recent note to clients, RBC Capital Markets chief US economist Tom Porcelli examined the trends by using two components of GDP as proxies: net exports of goods and services to reflect the effects of a slowing global economy, and real personal consumption expenditures to reflect the US consumer.
And he argues that when it comes to the US economy, the positive effects of the latter overshadow the negative effects of the former.
"One could argue that the global weakness this year has had some real effect on US trade, which has fallen on a trend basis to a lowly -0.55% contribution to topline GDP," writes Porcelli. "But the reality is that the entirety of this fallout has been offset (and then some) by the strengthening US consumer. The contribution to GDP from real consumption is now at 2.1% and up 0.8% from early 2014 (the last time trade was a 'neutral' contributor to topline growth."
(snip)
(Excerpt) Read more at businessinsider.com ...
Every thing is up and they count it as economic growth.
Inflation denial.
Huh? How can a commie company fire anyone?
Of course everyone has to come out of the bunker to buy more peanut butter once in a while.
Paraphrasing the Pope — Darn that bad old Capitalism!
Exactly. It is forced spending. Doesn’t mean people are spending more voluntarily on what they want. Means they are being forced to spend.
Duplicitous ba$/@rds.
and the huge influence of paying off the dindonuffins with increased food stamps etc...
mostly, I think many people are living on the edge, in deep debt to maintain their lifestyle...
They forgot to mention that the economy is so hot the fed kept ZIRP in place.They also failed to mention that consumer credit card debt is sky high. Can’t imagine why.
Credit card debt is high for the same reasons that the national debt is high. There are spending items that are ‘wants’ but are treated as ‘needs’.
Over the past year or so, my household income has dropped anout 50 percent. We spend differently. Debt is bad. We do have a credit card, but it is fully paid each month. We do not carry a balance.
No cable or dish tv. A little less AC and heat. Less eating out and such. My 15 year old vehicle has 300k miles, runs fine thankyou. Yet, we are still very content.
Not quite Galt, butmuch less spending. Wish more would do that and starve the beast.
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