Let the good times roll!

Lonestar · Post by **Lonestar** » 2007-06-01 10:14am

US Worst GDP Growth Since 2002

U.S. O.6 percent economic growth in the first quarter of 2007 is the worst result got in over four year period. The anticipated showing was 1.3, twice more than the real one. Moreover, the economy lost its pace of 2.5 percent, which was the showing for the final quarter of the last year.

The GDP 0.6 percent growth was the weakest since 2002, when the US economy was recovering from a recession. At that time the GDP showing was 0.2 percent.

Some economists were predicting that the first quarter of this year would be marked by some downgrade, but not so much. They thought the minimum performance would be 0.8 percent.

GDP is the measure of products and services, which are produced in the USA. It is one of the most important measures of the country’s economic situation.

Bond prices fell slightly after the GDP data was published as investors apparently saw it as a sign that official interest rates were less likely to be reduced. Stock futures prices got their gains, while the dollar fell against the euro.

Many economists believe that the situation will improve and the performance of the US GDP will go up.

Concerning unemployment rate, the US have good news. The Labor Department reported that there were fewer people sighed for unemployment benefits during the last week.

The National Association for Business Economics has optimistic predictions for the second quarter of 2007. They think that it will grow to 2.3 percent.

There were other factors that the government didn’t evaluate properly. Home building investment was cut by 15.4 percent during the first quarter, which had its impact on the GDP showing going down. This housing market is one of the most serious problems of the US economy.

However the consumer spending went up by 4.4 percent during this first quarter, which is the showing of the economic activity.

Many economists are worried how consumers would act, with the gasoline prices up to 3$ a gallon. This fuel spending leaves less money for other things.- Google Business News

Posted(for now) without comment.

Admiral Valdemar · Post by **Admiral Valdemar** » 2007-06-01 10:20am

What's that? The dollar isn't favourable in Kuwait anymore? Golly!

Meanwhile, Chindia devours all and sundry with insane economic growth.

Post by **Coyote** » 2007-06-01 10:22am

Nostalgia buffs, rejoice: soon, the 1920's amd '30's will be back.

Post by **K. A. Pital** » 2007-06-01 10:28am

So, the US is finally entering the recession phase?

I just hope it gives no dire and immediate consequences. Countries in recession become even more reckless in their acts, and the US is acting pretty damn reckless now.

wautd · Post by **wautd** » 2007-06-01 10:36am

Hey, don't feel too bad. At least the Great Leader and his junta made a good buck while they were riding the country

Post by **Edi** » 2007-06-01 10:47am

...right into the ground.

Lonestar · Post by **Lonestar** » 2007-06-01 11:22am

wautd wrote:Hey, don't feel too bad. At least the Great Leader and his junta made a good buck while they were riding the country

So did I

Gustav32Vasa · Post by **Gustav32Vasa** » 2007-06-01 01:05pm

And for the first time in memory the European economy is growing even when the US economy have problems.

Admiral Valdemar · Post by **Admiral Valdemar** » 2007-06-01 01:12pm

The UK's GDP growth has had to be revised upwards to around 2.6%, just behind Germany and with Chindia the leaders.

Medic · Post by **Medic** » 2007-06-01 05:47pm

This is confusing, FNC had me believing Republicans = good economy
and
bad economy = not enough tax cuts

Just in time for the Democratic congress to absorb the blame though, oh, and perhaps a Democratic president, that's great. More blank ammo for Republican whores.

Right now the scoreboard seems to be:
Dollar inflation (bad)
GDP slump (bad)
Gas prices still over $3 in plenty of places (bad, for spoiled Americans at least, it is

)
Iffy unemployment numbers (neutral to bad)
The DOW is through the roof! (good for everyone)

Any I missed on the health of the US economy at the moment?

Cincinnatus · Post by **Cincinnatus** » 2007-06-01 07:28pm

SPC Brungardt wrote:
Right now the scoreboard seems to be:
Dollar inflation (bad)
GDP slump (bad)
Gas prices still over $3 in plenty of places (bad, for spoiled Americans at least, it is )
Iffy unemployment numbers (neutral to bad)
The DOW is through the roof! (good for everyone)

The dollar depreciating isn't really wholly good or bad. It makes foreign goods more expensive (including oil, which helps drive the high gas costs), but it helps lower the trade deficit. If the dollar keeps depreciating, it means that it could lose more ground to the Euro as a reserve currency, but I'm not sure what the economic effects of that would be.

You're right that high gas prices are bad, but, as the article points out, consumer spending still increased. It's still up in the air whether or not this will turn into a full blown recession.

Also, unemployment is less than 5%. That's not "neutral to bad."

I'm not sure why people are blaming Bush for this. The real reason this is happening is because the housing bubble burst, and because the Fed increased interest rates to fight inflation.

I don't know why you think the unemployment rate is bad. IIRC, it's less than 5% right now.

Cincinnatus · Post by **Cincinnatus** » 2007-06-01 07:30pm

EDIT: Crap, I didn't mean to repeat myself about the unemployment rate. I went to double check at the BLS and forgot to delete the first comment. Could a mod delete that?