{"id":3042,"date":"2011-01-28T07:23:50","date_gmt":"2011-01-28T14:23:50","guid":{"rendered":"http:\/\/www.jasonapollovoss.local\/?p=3042"},"modified":"2018-09-21T02:08:21","modified_gmt":"2018-09-21T06:08:21","slug":"fourth-quarter-gdp","status":"publish","type":"post","link":"https:\/\/jasonapollovoss.com\/web\/2011\/01\/28\/fourth-quarter-gdp\/","title":{"rendered":"Fourth Quarter 2010 U.S. GDP"},"content":{"rendered":"

The U.S. Commerce Department reported this morning that gross domestic product (GDP) expanded 3.2% in the fourth quarter of 2010.\u00a0 This result compares to an expected figure of 3.5% growth by a consensus of economists.<\/span><\/p>\n

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Analysis:<\/strong> I consider this result to be positive.\u00a0 In the first quarter of 2010 GDP<\/a> grew by 3.7% but most of that growth was from businesses investing in inventories in anticipation of consumer demand that just didn’t materialize.\u00a0 Second quarter GDP<\/a> reflected that and the economy only expanded 1.7%.\u00a0 In part that quarter was negatively affected by the “flash crash” and the unfolding Eurozone debt crisis.\u00a0 Only in the third quarter, with GDP growth of 2.6%<\/a>, did the economy seem to be gaining its footing.\u00a0 But that level of growth was too low to excite.\u00a0 Now<\/strong> we have a real, solid, and most importantly, normal<\/em> GDP number!<\/span><\/p>\n

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The breakdown of GDP is: C<\/strong>onsumer spending + I<\/strong>nvestment by businesses + G<\/strong>overnment spending + X<\/strong>ports, net<\/span><\/p>\n

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Fourth quarter growth of…<\/span><\/p>\n

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