Market Mover Friday: GDP contracts 1% in Q2, Consumer Spending drops 1.2%…
Longest consecutive contraction in GDP since we began keeping records in ’47….PIMCO calls it the new normal under which we will have only 1-2% GDP for the foreseeable future. That GDP cannot sustain the deficit TOTUS is building…..Consumers are still keeping their light under a bushel….with Congress spending money like it’s going out of style and no jobs on the horizon MiM wonders why these business pundits express shock over the consumer spending number…..DEEP DENIAL….*everybody’s talkin’ bout the new spending plan honey but it’s still a recession to me*
…Gross domestic product, which measures total goods and services output within U.S. borders, fell at a 1.0 percent annual rate, the Commerce Department said, after tumbling 6.4 percent in the January-March quarter, the biggest decline since a matching fall in the first quarter of 1982.It was previously reported as a 5.5 percent drop.
With the contraction in the second quarter, U.S. GDP has fallen for four straight quarters for the first time since government records started in 1947.
“It’s still a shaky outlook for the economy, but no shakier than before. No one’s world view will shift. Consumer spending is very shaky now. That’s the major risk in the economy,” said Pierre Ellis, senior economist at Decision Economics in New York.
Consumer spending, which accounts for over over two-thirds of U.S. economic activity, fell at a 1.2 percent rate in the second quarter after rising 0.6 percent in the previous quarter….
Billy Joel performs the last concert at Shea Stadium July 18 2008 courtesy of godzillo