jimpeel
Well-Known Member
It seems that all of the doomsayers were wrong --- AGAIN. Ever notice that the experts are surprised by the "better than expected" results they declared would not happen?
http://www.foxnews.com/story/0,2933,353506,00.html
http://www.foxnews.com/story/0,2933,353506,00.html
What Recession? First Quarter GDP Shows Modest But Better-Than-Expected Growth
Wednesday, April 30, 2008
The nation's economy grew at a modest but better-then-expected pace last quarter, posting a 0.6 percent increase despite the continuing housing and credit problems plaguing many Americans.
Many analysts were predicting gross domestic product (GDP) growth would come in at 0.5 percent during the January — March 2008 period. Earlier this year, some economists thought the economy actually would lurch into reverse during the opening quarter.
The latest numbers reported Wednesday by the Commerce Department also did not meet what economists consider the classic definition of a recession, a retraction of the economy. This means that although the economy is stuck in a rut, it is still managing to grow, even if the growth is modest.
"The economy is weak but not collapsing," said Lynn Reaser, chief economist at Bank of America's Investment Strategies Group "A recession can't be ruled out, although the stars are not lined up at this point to definitively say one way or the other."
Gross domestic product measures the value of all goods and services produced within the United States and is the best measure of the country's economic health. Voters are keenly worried about the country's economic problems and so are politicians — in Congress, in the White House and on the campaign trail.
The housing situation turned more bleak in the first quarter, as record-high foreclosures dumped more unsold homes on the market, adding to builders' headaches. Builders slashed spending on housing projects by a whopping 26.7 percent, on an annualized basis, the most in 27 years. That was the big drag on economic growth.
Consumers — whose spending is vital to the country's economic health — turned much more cautious, also restraining overall economic growth in the first quarter. Their spending rose at just a 1 percent pace. That was down from a 2.3 percent growth rate and was the slowest since the second quarter of 2001, when the United States was suffering from its last recession.