Friday, July 30, 2010

GDP Growth Slows... Spike in Business Investment

Bloomberg details:

Growth in the U.S. slowed to a 2.4 percent annual rate in the second quarter, less than forecast, reflecting a larger trade deficit and cooler consumer spending.

The increase in gross domestic product compared with a median forecast of 2.6 percent of economists surveyed by Bloomberg News and follows an upwardly revised 3.7 percent pace in the first quarter that showed a jump in inventories, according to figures from the Commerce Department today in Washington. Business investment climbed at the fastest rate since 1997.
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Source: BEA

2 comments:

  1. Paul Ryan's been beating the investment drum as Krugman keeps wanting us to spend.

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  2. Broc-

    You should take economics. Investment IS spending. Krugman would be more than happy if a recovery was based on business investment. But since 70 percent of spending in the economy is consumption, we are more likely to recover if household consumption increases. That is all.

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