1.0% GDP Growth in Q2
Earlier today, the Bureau of Economic Analysis (US Department of Commerce) released their "second estimate" for Q2 real gross domestic product growth.
The BEA's first Q2 estimate had come in at 1.3%. The second (and more accurate) estimate came in at a paltry 1.0%. This was slightly lower than the 1.1% that had been forecast by economists heading into the release of Friday's revised number.
So, here is how GDP growth (annualized) has looked through the first six months of 2011:
That's a pretty dramatic slowdown for the US economy - there is a reason why many people are worried that the US economy is slipping back into another recession (or has already entered one).
Q2 consumer spending was revised higher to 0.4% from the previous estimate of 0.1%. A welcome revision higher, but the level of consumer spending in the country certainly needs to pick up if the economy wants to start gaining any real traction. That's easier said than done though, as the US consumer is being attacked on all sides by high unemployment rates, high inflation and a weak housing market. It's no wonder that the typical US consumer is not feeling in much of a spending mood right now.
In short - the US economy is precariously close to tipping into a "double dip recession". Can another recession be avoided? This is the question that will likely end up deciding the 2012 Presidential election.
Source: BEA.gov - Q2 Revised GDP Number
Filed under: The Economic Meltdown