This is an actual news report. Just pathetic.
The first estimate of second-quarter economic growth is likely to paint an ugly picture on Wednesday, but economists say it’s only temporary.
The economy probably grew at an annual pace of 1.4%, according to a survey of 42 economists by USA TODAY.
The culprits are led by lower government spending in the wake of federal budget cuts that kicked in March 1, with some effect from the January increase in payroll taxes. But the stronger outlook for the second half of the year is still intact, they say.
So the Obama Sequester will have more an a negative effect than the massive Obama tax increase? Really? A tiny fractional reduction in spending really has such a drastic effect on the economy? Please.
“There’s going to be some hyperventilation when the second-quarter numbers come out,” said Bernard Baumohl, chief global economist at the Economic Outlook Group in Princeton, N.J. “It’s hopefully not going to mislead people into thinking the economy is on the verge of another recession. The economic fundamentals of the U.S. are better than they’ve been in more than half a decade.”
But hey, things are looking up, or something:
The economy will grow faster in the second half of the year, the survey says. And most economists think the growth will be faster in the fourth quarter than in the third, rising to an annual rate of 2.6% by the end of 2013 and accelerating past 3% by mid-2014.
Wow, a whole 3%. Boom times!
Update: The number comes in at a higher than expected but still pitiful 1.7%.
The U.S. economy grew at a 1.7% annual rate in the second quarter, buoyed by a solid gain in consumer spending and a sharp increase in business investment, the Commerce Department said Wednesday. Economists polled by MarketWatch had expected growth to total 1.0%.
But about that first quarter:
Growth in the first quarter, meanwhile, was revised down to 1.1% from 1.8% as part of the government’s periodic update to how it measures the size of the economy and how fast it’s growing.