Hello everyone,
So 2nd quarter GDP figures came out today and were better than expected. GDP declined 1% vs. an expected 1.5% decline. This result is not to surprising, really. For much of the 2nd quarter consumers were upbeat and that usually translates into upticks in spending.
Importantly, this is the first pass at GDP. The bean counters constantly revise the figures even many years later. In fact, first quarter GDP was revised and the decline was even steeper than first reported. My point is that we are at the bottom of the recession. GDP, even if it is revised downward slightly, will still have declined at most around 2% in the second quarter. And there is an outside chance that GDP, once revised, will have been breakeven or slightly positive.
All of us will welcome the end of the recession and a restoration of economic health. It looks like the end is near.
Have an excellent weekend!
Jason
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