Posted on 07/29/2021 6:03:07 AM PDT by Hojczyk
GDP rose at a 6.4% annualized pace in the second quarter, according to the Commerce Department’s first estimate Thursday.
That was well below the Dow Jones estimate of 8.4%.
Initial claims for unemployment insurance also missed expectations, with the 400,000 total above the 380,000 expectation.
The U.S. economy rose at a disappointing rate in the second quarter in a sign that the U.S. has escaped the shackles of the Covid-19 pandemic but still has more work to do, the Commerce Department reported Thursday.
Gross domestic product, a measure of all goods and services produced during the April-to-June period, accelerated 6.4% on an annualized basis. That was slightly better than the 6.3% gain in the first quarter, which was revised down slightly.
While that would have been strong prior to the pandemic, the gain was considerably less than the 8.4% Dow Jones estimate.
Gross private domestic investment fell 3.5% as declines in private inventory and residential investment held back gains. Rising imports and a 5% decline in the rate of federal government spending, despite the ballooning budget deficit, also were a factor, the Bureau of Economic Analysis report said.
The overall increase came thanks to increasing personal expenditures, which rose 11.8% as consumers accounted for 69% of all activity. Nonresidential fixed investment, exports and state and local government spending also helped boost output.
(Excerpt) Read more at cnbc.com ...
Every day, something unexpected happens, as we slide into the abyss.
UNEXPECTED
Well, that was unexpected.
It should be a roaring economy as people go back to work; instead, Joe and his party have messed up something else. Poor Joe just can’t do anything right.
And all they had to do was leave it alone.
It is just government money...not the business sector...
Yep, government spending will spark the economy, for a while.
The problem is that 50% of the states that are controlled by the socialists. Those socialist have not eliminated the enhanced unemployment benefits. So, there is still not an incentive to go back to work in lower paying jobs.
Meanwhile, in states like NE, NH and others too many to name we are at record low UNEMPLOYMENT levels (2.3%).
It is so bad here that there was a post on my local FB page complaining that there was ONE checkout register manned at the local Walmart. The line at that register had 15 people in it.
Every business here in Nashua has help wanted signs in front.
Pay more to overcome the government payout. Sorry but the have to to it.
Interesting method to raise wages.
OK I’m confused.
Didn’t NH dropped the extra $300 in March? IF so that was supposed to make everyone go back to work.
How can “every business” have a help wanted sign while unemployment is 2.3%.
Where’d everybody go?
No.
How would that work? Would that be just a one time thing or would it happen every year? Every 3 years? The government would just look out and say:
“Hey, we don’t think people are being paid enough. Let’s give out some more stimulus!”
People quit and lay about at home until all the employers raise all the wages. Then they go back to work, eventually, and the cycle starts again.
So my small business is competing for workers against all the other small businesses in my line of service or product but also competing against the federal government.
No.
No 💩 Sherlock.
The Demonrats are destroying our economy.
>>It is just government money...not the business sector...<<
You are right on target! So much news pours in every day, we get inundated and stories of importance get lost in the fog.
Thousands of small/medium businesses closed their doors during the pandemic, never to reopen. Many more lost billions collectively in revenue/profit from lost sales. Now being forced to raise their starting wage to $15 hr due to the feds paying people to stay home.
Unemployment skyrocketed, landlords forced to eat lost rent, Illegals pouring across the Southern border further stressing infrastructure and American tax base.
The feds continue to pump $$$ into the economy. Propping up a fragile economy with stimulus is creating a huge bubble in the markets that will eventually pop.
Supply chain issues across sectors will throttle back earnings of corporate America in the coming quarters, inflation/fuel prices will cause American families to hunker down and pull back on spending. Housing prices are going to show up in new home purchases as they begin to slow.
It’s going to raise it’s ugly head and folks are going to be stunned.
Yes. The government fiddles with the labor market. Suck to be you but deal with our learn to code.
Yes, on the one hand the federal government floods the middle class white collar tech market with H-1B visas to LOWER prevailing wages in the IT sector and on the other hand they payoff benefits to artificially decrease the low skilled labor supply to INCREASE wages in that sector. It is damned schizophrenic IMO.
Everyone IS working here. The economy here is great. On FIRE.
That is the problem. Restaurants are busy on a Tuesday night like they would normally be on the weekends. People from MA have been coming across the border to NH to go out to eat, drink, spend money because everything is open/no masks.
Many business owners is MA are liberals who make you wear a mask into their business.
There is even a place in Cambridge that announced yesterday you need to show you were vaccinated to enter their place.
While that would have been strong prior to Biden not being elected.
fact check completed.
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