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U.S. Economy Grew 2.4% in Second Quarter, Below Forecast
By Timothy R. Homan – Jul 30, 2010 6:41 AM MST
Growth in the U.S. slowed to a 2.4 percent annual rate in the second quarter, less than forecast, reflecting a larger trade deficit and an easing in consumer spending.
The increase in gross domestic product compared with a median forecast of 2.6 percent of economists surveyed by Bloomberg News and follows an upwardly revised 3.7 percent pace in the first quarter that showed a jump in inventories, according to figures from the Commerce Department today in Washington. Business investment climbed at the fastest rate since 1997.
“The economy is muddling through,” Ethan Harris, head of North America economics at Bank of America-Merrill Lynch Global Research in New York, said in an interview after the report. “We’re probably not going to see a really strong number for a while. We need to see some pickup in job growth.”
A slower pace of growth means employers may be reluctant to hire workers and more likely to keep a lid on prices in order to boost sales. Federal Reserve Chairman Ben S. Bernanke last week said the central bank is prepared to take further policy actions if the world’s largest economy “doesn’t continue to improve.”
The Standard & Poor’s 500 Index dropped 1.1 percent to 1,089.97 at the 9:36 a.m. in New York. The yield on the 10-year Treasury note fell 6 basis points, or 0.06, to 2.92 percent.
Median Forecast
The projected gain in GDP was based on the median estimate of 81 economists surveyed. Forecasts ranged from gains of 1 percent to 4 percent.
The worst U.S. recession since the 1930s was even deeper than previously estimated, reflecting bigger slumps in consumer spending and housing, according to the Commerce Department’s annual revisions also issued today.
Jim Sinclair’s Commentary
3 bank failures so far this weekend
Bank Closing Information – July 30, 2010
These links contain useful information for the customers and vendors of these closed banks.
Coastal Community Bank, Panama City, FL
Bayside Savings Bank, Port Saint Joe, FL
NorthWest Bank & Trust, Acworth, GA
Jim Sinclair’s Commentary
Both you and I need to follow the real stats.
This for payment service is an absolute necessity to me.
Harry Schultz, Shadow Stats and JSMineset should provide all you need for gold.
- Worst Economic Downturn Since World War II Just Got Worst
- Bulk of First-Half GDP Growth Due to Inventories, Setting Up Likely Third-Quarter Contraction
- Lingering Market Hopes for Recovery Should Fade Quickly
"No. 313: Second-Quarter GDP and Revisions "
http://www.shadowstats.com/article
Jim Sinclair’s Commentary
John Embry is spot on. The title tells you all.
Gold’s On The Cusp Of A Parabolic Move Up
John Embry
Gold moved to several new all time highs in the month of June despite the absence of any overt enthusiasm for the yellow metal amongst the general public. Sentiment is remarkably negative when one considers the fact that were it any other asset class making new highs in a powerful multi-year bull market, the mainstream press would be trumpeting the news and the public would be falling all over themselves to buy.
