Posted on 02/26/2016 6:40:57 AM PST by SeekAndFind
The U.S. economy unexpectedly expanded at a faster pace in the fourth quarter than initially estimated, reflecting a higher value of business inventories.
Gross domestic product, the value of all goods and services produced, grew at a 1% annualized rate, compared with an initial estimate of 0.7%, Commerce Department figures showed Feb. 26. The median forecast in a Bloomberg News survey called for a 0.4% gain.
Consumer spending was revised lower. Although the economy slowed in the fourth quarter from 2% in the previous three months, growth is projected to re-accelerate this year as consumers tap into the benefits of a strengthening job market and savings on gasoline to boost spending. With companies making less headway in adjusting stockpiles, one risk for the economy is further weakness in manufacturing and business investment.
(Excerpt) Read more at ttnews.com ...
Yeh so true. If you want to see the state of the economy go into the grocery and big box stores and look at the shelves.
I find very little in this article that I believe to be true.
2% growth? When? Where? Estimated? Actual? Just a bunch of
mush.
SNL Skit
Business proposition, pure and simple. Same thing if you elect me President. Now, see here, Preident Bush gets $200,000 a year - forget it! If I’m President, we get 0% growth, you don’t pay me nothing. 1% growth? Hell, a chimpanzee could run this country and make 1% growth! So you don’t pay me dime one. Got my own plane, don’t need Air Force One. State Dinners? I’ll pay it, it’s nothing to me, sand on the beach! Now, don’t worry about ol’ Ross Perot, I got $3 billion back at home.
Now, here’s the deal. Here’s what I’m trying to tell you. 3% growth in our economy, $120 billion growth in our GNP - I get a billion dollars. Now, think about it, that’s a bargain! You’re up $119 billion. I’m telling you, 2.99% growth, I don’t see a penny, not one red cent. But don’t feel sorry for me - I got $3 billion. I’m gonna be fine.
Now, this here’s a business proposition. Now, see, 4% growth, you pay me $20 billion. The way I see it, you’re ahead $140 billion, see? Now, this ain’t no golden parachute, this isn’t the President GM giving himself a big bonus when the company’s losing money sending jobs to Mexico. I get my money if and when you get yours.
Now, 5% growth, I get $50 billion. Everybody’s happy, see? See, that’s it, it’s all right there just lied out on the table, you can take it or leave it, I don’t care. I’m gonna do fine, I got $3 billion sitting in the bank.
Now, I bought four minutes of national airtime to lay this out for y’all, and I see I got about 30 seconds left here, which I sold on contingency to the Munsenwear people. [ reads from card ] “Munsenwear, the underwear for the active man. Cut generously with a double-flap pouch for extra comfort. 100% cotton to prevent shrinkage. Munsenwear, because you don’t want your underwear to be like an Apache creeping up on you when you least expect it.” Thank you.
Announcer: Paid for by the Perot For President Committee, and Munsenwear.
So now we are subjected to the cheerleaders of expectations. This couldn't be a more meaningless measure. But it is quite "Democratic".
Be sure to watch for it on the "news".
Sure it did. It increased at 1/3 the inflation rate.
From the article -
The changes to fourth-quarter growth largely reflected how unsold goods are valued. In inflation-adjusted terms, there was more inventory accumulation than previously estimated as underlying price data were revised up.
Sounds to me that companies are having increased inventories because they are not selling stuff.
How can that be a good thing?
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