Tag Archives | US GDP

US GDP grows just 1.7% in Q2

“The big picture remains unchanged. Four years after the recession officially ended, per capita output and income have yet to return to their pre-crisis highs. The recovery still ranks as the worst since World War II. And despite the modest acceleration in the past two quarters, the recovery shows little sign of gaining momentum.” The […]

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US economy transitions to the New Normal

The above chart from the Wall Street Journal highlights the major change that has already taken place in the US economy as it transitions to the New Normal. The black line shows the 10-year average growth for US GDP since 1980, which has halved since 2008 because: • GDP grew at an average of 3.1% […]

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Buy on the rumour, sell on the news

“Buy on the rumour, sell on the news” is the classic indication of a weak market. A lack of follow-through buying reveals that market action is not supported by fundamentals, but only by sentiment and momentum. Friday’s 2.8% fall on the US S&P 500, in reaction to Thursday’s positive US GDP number, was therefore a […]

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Statistics, statistics

The blog has worried in the past about the way that official statistics seem to be increasingly manipulated to provide a rosy view of the economy. Barrons, the leading US investment magazine, provides another example this week, in connection with the report that US GDP grew at 3.3% in Q2. Barrons notes that this is […]

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