Growth Slow, but Exports Help Stave Off Contraction

[Angel Heart]

http://www.nytimes.com/2008/04/30/business/30econ-web.html?ref=business

Growth Slow, but Exports Help Stave Off Contraction
By PETER S. GOODMAN and MICHAEL GRYNBAUM
Published: April 30, 2008

The American economy remained stuck in the slow lane over the first three months of the year, expanding by a modest 0.6 percent annualized rate, the Commerce Department announced Wednesday morning.

The weak performance reflected the increasingly thrifty inclinations of American consumers in the face of plummeting real estate prices, tightening credit and a deteriorating job market. Economic growth was also hampered by a continued pullback in construction and business investment.

Still the number was slightly better than expected and helped to push the major market indexes higher on Wednesday.

The only factors preventing the economy from sliding backward were the growth of American exports — aided by a weakening dollar — and a buildup of inventories by businesses. Exports and inventories set aside, final sales of American goods and services domestically dipped at a 0.4 percent annualized rate in inflation-adjusted terms, the first decline since the end of 1991.

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[TopGunna]

Looks like the US economy is actually not in a recession - by the definition of two quarters of negative economic growth.

That being said, a recession is still a very real possibility until the dollar rebounds to drive fuel and food prices down.

 

[Angel Heart]

I think it's always a possibility. Even when it's zooming along there's a chance of it. Right now we are greater risk but can still prevent it. People need to really open up their eyes and realize that things are not as bad as the press and politicians want to make it out to be.