More economic good news! GDP rebounds 4%

[rightwinger]

Economy rebounds to 4% growth pace in Q2
http://money.cnn.com/2014/07/30/investing/gdp-report/index.html

New data released Wednesday show the U.S. economy bounced back in the spring, growing at a 4% annual pace in the second quarter. That was even better than the forecast of 3% growth, according to a consensus of economists surveyed by CNNMoney.

Consumer spending, which alone accounts for about two thirds of U.S. economic activity, strengthened, as did exports to foreign countries and business investments.

American consumers spent more money on long-lasting goods like autos and furniture, and businesses invested more in technology and industrial equipment. Both can be seen as good signs that households and companies are more optimistic and investing in the future.



Great to see the first quarter numbers were not a trend

 

[Pennywise]

Lie.

 

[Mad Scientist]

That's one way to look at it.

Q2 GDP Surges 4%, Beats Estimates Driven By Inventories, Fixed Investment Spike; Historical Data Revised | Zero Hedge

What is interesting is that the Commerce Department announced that as a result of incomplete June data, the biggest components of the GDP beat, Inventories and Trade, were estimated. In other words, assume that future revisions of Q2 GDP will be lower, not higher, as the actual data comes in, and especially as the CapEx data, which contrary to the GDP report, has not rebounded.

Based on Inventories. In the Auto Industry that's called "Channel Stuffing".

 

[Mac1958]

.

Nice, nice, nice. Deutsche Bank had it right on the button.

Good, another one or two of these and we can achieve escape velocity.

Nice.

.

 

[Sallow]

Great!

 

[Moonglow]

It's good news , unless you're a rightwinger on USMB...

 

[AceRothstein]

It's good news , unless you're a rightwinger on USMB...

Bingo.

 

[Peach]

It's good news , unless you're a rightwinger on USMB...

Bingo.

Time for "trickledown". A strong quarter should equal hiring.

 

[AceRothstein]

The other good news is that Q1 was revised up a bit. So still a poor quarter but not as poor as originally thought.

 

[Rocko]

Not a big surprise, we were expected to have a strong second quarter. Let's see how long it lasts.

 

[Moonglow]

It's good news , unless you're a rightwinger on USMB...

And the only reason why this is good news for a leftwinger on USMB is they get to lick Obama's asshole some more.

I am more concerned about the USA than making political points on a thread..But I can see where your mind likes to put ones tongue upon...

 

[Toro]

This is a rebound from the -2% contraction in Q1, which was driven by weather.

The details of Wednesday's report showed household spending advanced at a 2.5% rate, an increase from the first quarter's modest 1.2% gain. Personal consumption was led by spending on goods, including cars and home furnishings. Spending on health-care services advanced slightly in the spring after falling in the prior quarter.

The change in private inventories added 1.66 percentage points to growth during the quarter. A strong buildup in inventories had helped propel growth in the second half of last year, but then the reversal contributed to the first-quarter contraction. In the second quarter real final sales, a measurement of GDP that excludes changes to inventories expanded at a 2.3% pace. That compares with a 1% contraction in the first quarter.

Business spending on items such as equipment, buildings and intellectual property rose at a 5.5% pace from April to June. Spending on equipment increased at a 7% rate in the second quarter after declining in the first.

Residential fixed investment—spending on home building and improvements—increased at a 7.5% rate in the second quarter. The category had declined the prior two quarters. The reading comes amid mixed signals about the housing market. Sales of new homes have slowed this year, but purchases of existing homes picked up steam during the spring.

http://online.wsj.com/articles/seco...-0-rate-1406723867?mod=WSJ_hpp_LEFTTopStories

 

[Rocko]

It's good news , unless you're a rightwinger on USMB...

And the only reason why this is good news for a leftwinger on USMB is they get to lick Obama's asshole some more.

I am more concerned about the USA than making political points on a thread..But I can see where your mind likes to put ones tongue upon...

Did I say you were a leftwinger? I'm certainly not a leftwinger or a homosexual for that matter, if I'm licking someone's asshole it better be a hot babe.

 

[JimBowie1958]

That's one way to look at it.

Q2 GDP Surges 4%, Beats Estimates Driven By Inventories, Fixed Investment Spike; Historical Data Revised | Zero Hedge

What is interesting is that the Commerce Department announced that as a result of incomplete June data, the biggest components of the GDP beat, Inventories and Trade, were estimated. In other words, assume that future revisions of Q2 GDP will be lower, not higher, as the actual data comes in, and especially as the CapEx data, which contrary to the GDP report, has not rebounded.

Based on Inventories. In the Auto Industry that's called "Channel Stuffing".

The same article also notes:
"Speaking of revisions, today the BEA also released its annual revision of all data from 1999 to Q1 2014, which made last quarter's "harsh weather" -2.9% print a more palatable -2.1%, in the process throwing everyone's trendline calculations off as yet another GDP redefinition was implemented."

So if you cant make your economy perform to expectations, just redefine how those expectations are statistically measured. It would be like Obama was trying to run a 100 yard dash in less than 10 seconds, so he officially shortened the yard to 26" and finally made his goal.

:/

Only the absolutely gullible fools by these cooked statistics. The remaining question is "When does this 'House of Cards' finally collapse?"

 

[JimBowie1958]

This is a rebound from the -2% contraction in Q1, which was driven by weather.

Bullshit.

 

[ScreamingEagle]

so........can we stop QE now.....?

 

[Peach]

Not a big surprise, we were expected to have a strong second quarter. Let's see how long it lasts.

Yes, two strong quarters are necessary to conclude we are out of the seemingly endless slump.

 

[deltex1]

This is a rebound from the -2% contraction in Q1, which was driven by weather.

The details of Wednesday's report showed household spending advanced at a 2.5% rate, an increase from the first quarter's modest 1.2% gain. Personal consumption was led by spending on goods, including cars and home furnishings. Spending on health-care services advanced slightly in the spring after falling in the prior quarter.

The change in private inventories added 1.66 percentage points to growth during the quarter. A strong buildup in inventories had helped propel growth in the second half of last year, but then the reversal contributed to the first-quarter contraction. In the second quarter real final sales, a measurement of GDP that excludes changes to inventories expanded at a 2.3% pace. That compares with a 1% contraction in the first quarter.

Business spending on items such as equipment, buildings and intellectual property rose at a 5.5% pace from April to June. Spending on equipment increased at a 7% rate in the second quarter after declining in the first.

Residential fixed investment—spending on home building and improvements—increased at a 7.5% rate in the second quarter. The category had declined the prior two quarters. The reading comes amid mixed signals about the housing market. Sales of new homes have slowed this year, but purchases of existing homes picked up steam during the spring.

U.S. Second-Quarter GDP Expands at 4.0% Rate - WSJ

So you're saying climate change was a factor...going for a fantasy twofer, I see...

 

[rightwinger]

It's good news , unless you're a rightwinger on USMB...

And the only reason why this is good news for a leftwinger on USMB is they get to lick Obama's asshole some more.

What passes for insightful economic analysis to Conservatives

 

[rightwinger]

so........can we stop QE now.....?

I think we are