Q309 GDP
US Q309 Advance GDP +3.5%
The 3.8% contraction in the 12 months to June was the worst performance in seven decades.
The four consecutive decreases mark the longest stretch of declines since quarterly records began in 1947.
+3.4% Growth in consumer spending, which accounts for about 70% of the economy...
“largely reflected” an increase in purchases of automobiles attributable to the government’s “cash-for-clunkers” plan, the report said.
Real final sales of domestic product -- GDP less change in private inventories -- increased 2.5%.
Purchases of durable goods, which include autos, jumped 22%, the biggest increase since 2001.
Excluding sales, production and inventories of automobiles, the economy grew 1.9% last quarter.
Since the recession began in December 2007, the U.S. has lost 7.2 million jobs.
Monthly payroll cuts peaked at 741K in January before falling to 263K job losses in September.
Policy makers will now focus on whether the “recovery”, supported by government spending and tax credits, can be sustained into 2010 and generate jobs.
The Nattering One muses… ex auto GDP +1.9%; without the reduction in inventory adding 0.94%; real GDP is +0.96%.
Can it be sustained? Without $8K homebuyer tax credits and cash for clunkers a Q409 negative GDP will be a bitter pill to swallow.
The 3.8% contraction in the 12 months to June was the worst performance in seven decades.
The four consecutive decreases mark the longest stretch of declines since quarterly records began in 1947.
+3.4% Growth in consumer spending, which accounts for about 70% of the economy...
“largely reflected” an increase in purchases of automobiles attributable to the government’s “cash-for-clunkers” plan, the report said.
Real final sales of domestic product -- GDP less change in private inventories -- increased 2.5%.
Purchases of durable goods, which include autos, jumped 22%, the biggest increase since 2001.
Excluding sales, production and inventories of automobiles, the economy grew 1.9% last quarter.
Since the recession began in December 2007, the U.S. has lost 7.2 million jobs.
Monthly payroll cuts peaked at 741K in January before falling to 263K job losses in September.
Policy makers will now focus on whether the “recovery”, supported by government spending and tax credits, can be sustained into 2010 and generate jobs.
The Nattering One muses… ex auto GDP +1.9%; without the reduction in inventory adding 0.94%; real GDP is +0.96%.
Can it be sustained? Without $8K homebuyer tax credits and cash for clunkers a Q409 negative GDP will be a bitter pill to swallow.
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