U.S. GDP Grows Just 1.3% - WSJ.com
BAD: GDP Misses Estimates At 1.3%, Q1 Revised Down To Just 0.4%The U.S. economy expanded at a slower pace than expected in the spring as consumers cut back on spending, while revisions showed the slowdown since the beginning of the year was much more drastic than previously thought.
The Commerce Department Friday said gross domestic product rose at an annualized seasonally adjusted rate of 1.3% in April through June, while first-quarter growth was revised down sharply to a 0.4% rate from the earlier estimate of a 1.9% gain. A big reason behind the downward revision in first-quarter growth was that the inventory buildup by companies was less than initially estimated, while outlays by the federal government and consumers were also revised down.
I know somebody had predicted 1.3%, but it was certainly a low-ball estimate. I expected the 1st quarter to revised down (just because that's been the trend) but never would have guessed 0.4%??GDP just missed expectations at 1.3%.
Analysts were looking for 1.8%.
Even worse, perhaps: Q1 GDP was revised from 1.9% all the way down to 0.4%, which is stunning.
Personal consumption, which was expected to grow by 0.8%, only grew by 0.1%.
Bad all around
Stocks diving now over 1% in the pre-market.
The graph of the recovery now looks like you threw something off a building and it hit bottom and took a small bounce.
Bernancke is of course assuring us that the next few months will be better...
Up 1.6% last quarter and 2.1% this quarter.