Laughable: Expected ‘Ugly’ GDP Report Will Be ‘Only Temporary’; Update: Comes in at 1.7%

Posted by on Jul 31, 2013 at 7:58 am

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.



6 Responses to “Laughable: Expected ‘Ugly’ GDP Report Will Be ‘Only Temporary’; Update: Comes in at 1.7%”

  1. gekkobear on 31/31/13 at 10:58 am

    “They emphasized the rise of new and cheaper sources of natural gas, the rise of more-efficient “big data” computing and the improved buying power of less-indebted consumers.”

    Don’t worry, Obama is doing all he can to kill fracking, keep energy costs high, make networking people worry the NSA will steal their data, and raise debt and taxes on everyone he can.

    We’ll kill this recovery before it even gets started. Just like we planned.

    What? That’s not the plan? Prove it… what would we do differently over the past 4 years if it were the plan?

  2. jukin on 31/31/13 at 11:00 am

    This the transformed America that 0bama told us he would bring. Add in race relations set back 60 years and government spying on everyone and we look an awful lot like a certain country in europe around the mid 1930s.

  3. teapartydoc on 31/31/13 at 6:38 pm

    The country obviously needs more stimulation. Maybe vibrators should have been part of the Obamacare “package” for women.