.9% Real GDP Growth in QI = NO Recession
Submitted by CARPE DIEM
WASHINGTON — The U.S. economy was stronger than first thought because of a better trade balance and stronger business spending.
Gross domestic product rose at a seasonally adjusted 0.9% annual rate January through March, the Commerce Department said in the second estimate of first-quarter GDP (see chart above). Originally, in a report a month ago, Commerce said GDP increased 0.6% in the first quarter — the same, rate of growth achieved in the fourth quarter.
Bottom Line: With GDP growth of almost 1% in the first quarter, there is almost 0 probability that the NBER could determine that the U.S. economy was in recession in 2008, at least not during the first quarter.
Visit 1800blogger to see all of our industry leading blogs.
Are you an investor? Have something you want to say about the economy? Register on Econoimist Blog now and get published within minutes. Before posting, it is recommended that you review our posting guidelines.
