Gross domestic product increased at a 0.7 percent annual rate

'US economy hits soft patch in fourth quarter as inventories, trade weigh'


'U.S. economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports.

Gross domestic product increased at a 0.7 percent annual rate, the Commerce Department said on Friday in a report that showed a further cutback in investment by energy firms grappling with lower oil prices.

Growth in consumer spending also slowed as unseasonably mild weather cut into spending on utilities.

The fourth-quarter growth pace was in line with economists' expectations and followed a 2 percent rate in the third quarter. The economy grew 2.4 percent in 2015 after a similar expansion in 2014.'

http://www.cnbc.com/2016/01/29/us-q4-gdp.html


Thoughts?

BTW, once again the GDP Now chart coming out of the Atlanta Fed called it far more accurately then most economists.



https://www.frbatlanta.org/cqer/research/gdpnow.aspx?panel=1

My thoughts? Beginning of the next recession.

DA60 said:

'US economy hits soft patch in fourth quarter as inventories, trade weigh'


'U.S. economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports.

Gross domestic product increased at a 0.7 percent annual rate, the Commerce Department said on Friday in a report that showed a further cutback in investment by energy firms grappling with lower oil prices.

Growth in consumer spending also slowed as unseasonably mild weather cut into spending on utilities.

The fourth-quarter growth pace was in line with economists' expectations and followed a 2 percent rate in the third quarter. The economy grew 2.4 percent in 2015 after a similar expansion in 2014.'

http://www.cnbc.com/2016/01/29/us-q4-gdp.html


Thoughts?

Click to expand...

Only that it would have been nice, had we run down the federal debt more or at least brought the deficit to zero. That would have strengthened the saftynet should it become nasty.

DA60 said:

'US economy hits soft patch in fourth quarter as inventories, trade weigh'


'U.S. economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports.

Gross domestic product increased at a 0.7 percent annual rate, the Commerce Department said on Friday in a report that showed a further cutback in investment by energy firms grappling with lower oil prices.

Growth in consumer spending also slowed as unseasonably mild weather cut into spending on utilities.

The fourth-quarter growth pace was in line with economists' expectations and followed a 2 percent rate in the third quarter. The economy grew 2.4 percent in 2015 after a similar expansion in 2014.'

http://www.cnbc.com/2016/01/29/us-q4-gdp.html


Thoughts?

Click to expand...

It's a joke. Just because it was what they expected, doesn't mean it's good.

I, for one, am hoarding gold. So far I have a wedding ring. Laugh if you want to, but it's 18k. Not sure about the preparation, but if things get really bad I plan on eating it.

American said:

It's a joke. Just because it was what they expected, doesn't mean it's good.

Click to expand...

You have to give him time, it's only been seven years of Obama socialism. Besides, it's all really because the GOP is the party of "no", not letting Obama do what he wants (racists too!). Can you imagine how well we would be doing with an even bigger government and higher taxes?

Beaudreaux said:

My thoughts? Beginning of the next recession.

Click to expand...

Don't know, but I have been contemplating moving my all or most of my 401k funds to bonds, but keep my new investing in stocks.

American said:

It's a joke. Just because it was what they expected, doesn't mean it's good.

Click to expand...

No kidding. Isn't the economy stagnant if the GDP equals population growth and inflation, and sliding if less?

DA60 said:

Thoughts?

Click to expand...

Not surprisingly exports are down, with the EU, Japan, and China in a race to devalue their currencies in an attempt to export their way to prosperity. Apparently they're counting on the U.S. consumer to bail out their economies, but, frankly, I wonder where the U.S. consumer is going to get the money from. More than half of wage earners don't make even $30,000 a year (https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2014), the average household now carries more than $15,000 in credit-card debt (American Household Credit Card Debt Statistics: 2015 - NerdWallet), and more than half of these consumers have subprime credit. So who, exactly, is supposed to buy all of this crap companies from all over the planet want to sell us? Joe Sixpack is tapped out, so something has to give, and what that is is the price at which goods will be sold. DEFLATION, not INFLATION, is the real threat here, just as it's been in other countries that had asset bubbles pop. We think we licked deflation with easy Fed money after the 2007-08 Financial Crisis, but we still have a huge debt overhang that will keep our economy limping along for years to come. Cash is and will remain king.

Ahlevah said:

Not surprisingly exports are down, with the EU, Japan, and China in a race to devalue their currencies in an attempt to export their way to prosperity. Apparently they're counting on the U.S. consumer to bail out their economies, but, frankly, I wonder where the U.S. consumer is going to get the money from. More than half of wage earners don't make even $30,000 a year (https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2014), the average household now carries more than $15,000 in credit-card debt (American Household Credit Card Debt Statistics: 2015 - NerdWallet), and more than half of these consumers have subprime credit. So who, exactly, is supposed to buy all of this crap companies from all over the planet want to sell us? Joe Sixpack is tapped out, so something has to give, and what that is is the price at which goods will be sold. DEFLATION, not INFLATION, is the real threat here, just as it's been in other countries that had asset bubbles pop. We think we licked deflation with easy Fed money after the 2007-08 Financial Crisis, but we still have a huge debt overhang that will keep our economy limping along for years to come. Cash is and will remain king.

Click to expand...

A 'household' has got to be out of it's financial mind to have that much credit card debt.

Credit card debt is like a legal loan shark and the minimum payments are like the juice.

DA60 said:

A 'household' has got to be out of it's financial mind to have that much credit card debt.

Credit card debt is like a legal loan shark and the minimum payments are like the juice.

Click to expand...

Payday lenders are much worse, and yet the people who can least afford them are the best customers. Not surprising when 63% of Americans lack an emergency fund and couldn't cough up even a few hundred dollars to pay an auto repair bill. All I can say is thank God we still have a few moms and grandmas to bail out Junior even as Dad is AWOL. But even families with decent income are flirting with being broke:

Savings were predominantly seen among those with higher income and education, according to Bankrate. It was found that 46% of households that made $75,000 or more and 52% of college graduates had just enough savings to cover a $500 car repair or $1,000 emergency room visit.

The Majority of Americans Are One Paycheck Away From Being Completely Broke, Survey Finds

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So if China, Japan, or the Euros are looking to the American consumer to come to their rescue good luck.

humbolt said:

I, for one, am hoarding gold. So far I have a wedding ring. Laugh if you want to, but it's 18k. Not sure about the preparation, but if things get really bad I plan on eating it.

Click to expand...

LOL. How is that working out for you?

99percenter said:

LOL. How is that working out for you?

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Glen Beck tells me I'm doing fantastic. I pan for gold in these two streams here at least twice a week. So far nothing but two Budweiser cans, but that hasn't dimmed my enthusiasm.