The GDP for the 2nd quarter of 2010 has been revised down to 1.6%, maybe VP Joe Biden would like to make a fool out of himself again and praise the Obama economic recovery and tell us again that the economy is headed in the right direction. Weatherize these GDP numbers Joe! The weak GDP growth is just thje latest in a long line of poor economic numbers that show exactly what most Americans agree on, Obama is a disaster on the economy.
Economic growth slowed more sharply than initially thought in the second quarter, held back by the largest increase in imports in 26 years, a government report showed on Friday.
Gross domestic product expanded at a 1.6 percent annual rate, the Commerce Department said, instead of the 2.4 percent pace it had estimated last month.
However, the reading was a touch better than market expectations. Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, revised down to a 1.4 percent growth rate. The economy grew at a 3.7 percent pace in the first three months of the year.
When Obama asked for comments of the revised GDP number, he was heard to say, “I can’t talk now, I am buying shrimp.”
As Hot Air states, it is going to be difficult for Obama and his minions to spin the idea that the economy is headed in the right direction. The GDP in Q4 of 2009 was 5.7%, GDP in 2010 Q1 was 3.7% and GDP for 2010Q2 was 1.7%. You follow the downward trend, think the economy is headed in the right direction America?
AP reports that the predictions for Q3 of 2010 will not be much better …
That’s a sharp slowdown from the first quarter, when the economy grew at a 3.7 percent annual rate, and economists say it’s a taste of the weakness to come. The current quarter isn’t expected to be much better, with many economists forecasting growth of only 1.7 percent. Still, many economists had expected a sharper drop in the second-quarter reading.
The slow growth in the spring was mostly due to the largest surge in imports in 26 years and a slower buildup in inventories.
The economy has grown for four straight quarters, but that growth has averaged only 2.9 percent, a weak pace after such a steep recession. The economy needs to grow at about 3 percent just to keep the unemployment rate, currently 9.5 percent, from rising.
“The economy is going to limp along for the next few months,” said Gus Faucher, an economist at Moody’s Analytics. There’s even a one in three chance it could slip back into recession, he said.