GDP Growth Dismal But Expected
NEW YORK (TheStreet) -- The latest estimate of economic growth was dismal but expected.
The government slashed its second estimate of second-quarter gross domestic product to 1% from its prior estimate of 1.3%.
The Commerce Department's first estimate last month had already been a major disappointment. Since then, the steady stream of firms ratcheting down their own expectations for growth have seemed to crystallize market fears about the potential for a double-dip recession.
The consensus view for the latest revision was down to 1.1%, while Briefing.com saw a dip down to 1%. First quarter GDP growth is estimated at 0.4%.Slower growth in exports and inventories chipped away at GDP growth, while an upwards revision in consumption helped overall growth. Personal consumption increased 0.4% compared to the first estimate where it had tapered to a meager 0.1% increase. Despite the upward adjustment to personal consumption, however, the figure is still down significantly from a 2.1% increase in the first quarter. There's "probably a little bit of comfort taken by people that the US consumer was not as weak as previously feared but this release is definitely not a reason to suddenly feel bullish," writes David Semmens, economist with Standard Chartered Bank. -- Written by Chao Deng in New York. >To contact the writer of this article, click here: Chao Deng. >To follow the writer on Twitter, go to: @chao_deng >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV