32.4 percent surge in imports last quarter choking economic growth - Bye, bye, jobs

[NNN0LHI]

http://www.khaleejtimes.ae/biz/inside.asp?xfile=/data/business/2010/August/business_August405.xml§ion=business

(AP)

Imports drag US 2nd-quarter growth lower

27 August 2010

WASHINGTON - U.S. economic growth slowed more sharply than initially thought in the second quarter, held back by the largest increase in imports in 26 years, a government report showed on Friday.

Gross domestic product expanded at a 1.6 percent annual rate, the Commerce Department said, instead of the 2.4 percent pace it had estimated last month.

However, the reading was a touch better than market expectations. Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, revised down to a 1.4 percent growth rate. The economy grew at a 3.7 percent pace in the first three months of the year. snip

The recovery from the worst economic downturn since the Great Depression had been largely fueled by a $862 billion government stimulus package and businesses rebuilding inventories from record low levels.

IMPORTS CHOKING GROWTH

Growth in the last quarter was stifled by a 32.4 percent surge in imports, the largest since the first quarter of 1984, dwarfing a 9.1 percent rise in exports. That created a trade deficit, which sliced off 3.37 percentage points from GDP, the largest subtraction since the fourth quarter of 1947.

[DJ13]

1. Well the obvious answer is to increase H1-B visas

-signed,
Bill Gates

[meegbear]

3. Oh SNAP!

-signed,
Steve Jobs

[nadinbrzezinski]

2. You'd think they'd get it, why we need an indus...

oh wait, never mind...

This crap is ON PURPOSE.

[Donnachaidh]

4. Non one is going to have the extra cash for those imports

Isn't this the time of the year that companies start bringing in all the Christmas BS? This Xmas season is going to be VERY interesting, when these companies expect people to buy - and they wind up choking on the un-sold imports.

[SoCalDem]

7. Last night at Costco, They already had Xmas toys out

It was surreal to see a cast off Rudolph the red-nosed reindeer straddling a barbeque grill.. .... a shopper left it there

[Donnachaidh]

9. I've just seen Halloween stuff here

But haven't been to BJ's or Costco yet this week.

This season should be very interesting. Expect lots of store closings in January...

[w8liftinglady]

5. ok...this will be my next ltte-but I need some good resources..

best place to find exactly who is importing what...and where from?
who in the US is profiting...?
what companies have outsourced overseas...?


any suggestions on reliable sources would be appreciated

[AndyA]

6. Americans are STOOOPID.

What's in the garage: a Toyota and a Honda. Profit from purchase goes...overseas.

What's in the house: trinkets made in China, imported this and imported that.

And they wonder why there are no jobs here in America. Get a clue, people. Support America FIRST. You are shopping yourselves out of a job!

[xchrom]

8. Here's one example that makes me very sad - Pottery Barn

Is selling quilts patterned by the Gees Bend association.

But those quilts - originals in museums and private collections - ground breaking outsider art creations -- are IMPORTED.

[scheming daemons]

10. If we're importing that much in goods, then SOMEBODY is buying it.... that could be a good sign

...

[w8liftinglady]

11. maybe not...

http://economictimes.indiatimes.com/news/international-business/Imports-drag-US-2nd-quarter-growth-lower/articleshow/6446965.cms

snip

Stubbornly high unemployment has dampened consumer spending, which normally accounts for 70 per cent of US economic activity. Spending added 1.38 percentage points to GDP last quarter.

Although businesses have been reluctant to hire new workers, they have been splurging on equipment and software, which also contributed to the surge in imports. Business investment was revised up to a 17.6 per cent rate, the largest increase since the first quarter of 2006, from the previously estimated 17 per cent pace.

Investment in equipment and software was the strongest since the fourth quarter of 1983. Spending on structures was revised to show a far smaller increase than previously estimated but still posted the first rise in spending on structures since the second quarter of 2008.

Growth in new home construction was revised down slightly to 27.2 per cent from 27.9 per cent. The sector, which was a drag on growth in the first quarter, was lifted by a spurt in building activity spurred by a popular home-buyer tax credit that has since expired. The rate of increase was still the biggest since the third quarter of 1983.

Residential investment had contracted at a 12.3 per cent rate in the first quarter

[NNN0LHI]

12. If we can accept 10% unemployment as the norm that is true

And I think that may be the case from here on out.

Don