Hey that Keynesian stuff is really working!
7/29/11, "Economy in U.S. Grows Less Than Forecast After Almost Stalling," Bloomberg News, S. Chandra
"The U.S. economy grew less than forecast in the second quarter....
Gross domestic product climbed at a 1.3 percent annual rate following a 0.4 percent gain in the prior quarter that was less than earlier estimated, Commerce Department figures showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for
- a 1.8 percent increase.
Household purchases, about 70 percent of the economy, rose 0.1 percent....
Growth in the first quarter was revised down [to .4] from a 1.9 percent prior estimate, reflecting fewer inventories and more imports.
Revisions to GDP figures going back to 2003 showed that the 2007-2009 recession took a bigger bite out of the economy than previously estimated and the recovery lost momentum throughout 2010. The world’s largest economy shrank 5.1 percent from the fourth quarter of 2007 to the second quarter of 2009,
- compared with the previously reported 4.1 percent drop.
The second-worst contraction in the post-World War II era was a 3.7 percent decline in 1957-58....
Higher expenses for necessities like food and energy may have curtailed spending on less essential items. The cost of a gallon of regular gasoline climbed in May to about $4 a gallon, the highest in almost three years, according to AAA, the nation’s biggest auto group."...
Clue for 'economists':
"Every 50-cent jump in the cost of gasoline takes $70 billion out of the U.S. economy over the course of a year."...
- 5/27/11, "Gas tanks are draining family budgets," AP, J. Fahey
7/29/11, "Wall street set for worst week in year after GDP data," Reuters