GDP Rises in Second Quarter
We’re still waiting for that recession let alone the depression some have fear was upon us. Today, the Commerce Department reported [PDF] second quarter GDP rose 1.9%, one percentage point higher than the first quarter. Increased exports, decreased imports, and consumer spending due to stimulus rebate checks played key roles in the number.
However, there is a big piece of ammunition for those who insist we’re in a recession. Fourth quarter GDP for 2007 was revised down to -0.2%. I could see first quarter 2008 GDP eventually revised down into negative territory giving the conventional wisdom definition of a recession. That’s fine, since I haven’t felt the need to make a big deal of using the r-word or not. My concern has been with some to make a sluggish economy look worse than it already is.
As for the near future the stimulus from rebate checks will diminish so consumer spending might not be there. The dollar remains low so exports should continue to do its thing to help–assuming more politicians don’t take up Sen. Obama’s anti-NAFTA talk.
“GDP Accelerates to 1.9% Pace in Second Quarter”
UPDATE: Don Surber notes the NY Times “keeps hoping for a recession” while Dan Gainor reminds us the network evening news has been talking down the economy for months.
