Q2 GDP: So Weak That A New Recession Now Looks More Than Possible

[marmar]

from 24/7WallStreet:



Q2 GDP: So Weak That A New Recession Now Looks More Than Possible
Posted: July 29, 2011 at 8:47 am


The Commerce Department is delivering some awful news on the second quarter preliminary Gross Domestic Product in the U.S. GDP is coming in at a preliminary second quarter level of a mere 1.3%. Dow Jones had targets of 1.8% and Bloomberg had an estimate of 1.9% on last look. If you put in the PCE Price Index that came in at 3.1% versus a Q1-2010 reading of 3.9%.

To make matters worse, the first quarter was revised down to only +0.4% from 1.9%. The final-final Q4-2010 GDP was revised to 3.0% from 2.9%.

The big issue is consumer spending, which comprises the largest portion of GDP, and it was up a mere 0.1% from April to June. What is interesting is that so many retail sales figures have been coming in well, but the effect of higher food and gas prices for much of the first half of the second quarter may have skewed this data. Still, there is just no way to sugar coat this report. You can add the woes of Europe and the woes of Japan as India and China keep putting on the inflationary brakes, but nothing will make the number sound off in a good way. ..........(more)

The complete piece is at: http://247wallst.com/2011/07/29/q2-gdp-so-weak-that-a-new-recession-now-looks-more-than-possible/#ixzz1TUy9SpGb

[still_one]

1. and that is why they should just focus on raising the debt ceiling, and screw the deficit. Create

jobs and stimulate the economy

[WI_DEM]

2. Create jobs and the deficit will naturally come down.

[tpsbmam]

3. I was just about to post this. This is a true "duh!"

These assholes are starving the little guy -- who the hell do they think is going to be buying the foreign crap they're importing from all of their overseas outsourced jobs? Not the increasingly impoverished little guy who they're so busy fucking. And it'll only get worse as they do it even more after passing whatever crap they end up passing. Morons.

[gkhouston]

4. You can't expect consumers to spend when they don't have money.

For Wall Street, it would be a "second recession". For the rest of us, the first recession never ended.