Skip to comments.At Last! Q3 Real GDP Grows at 2.0 Led By Surge in Government Spending of 2.8%
Posted on 10/26/2012 8:07:38 AM PDT by whitedog57
At last, after suffering through the worst recovery from a financial crisis since 1882, Q3 real GDP grew at an annualized rate of 2.0%.
Personal consumption expenditures grew at 2.0% less than the 2.1% forecast by economists. A miss, but close.
The real corker in todays GDP report was the return of government spending +2.8%, the biggest growth since June 2009. Government Purchases is purchases from business, compensation of Government employees, and purchases from the rest of the world. Receipts of certain services provided by Government, primarily tuition payments for higher education and charges for medical care, are defined as Government sales, which are treated as deductions from Government purchases. The change in inventories and purchases of structures and equipment by Government enterprises are included, but their current account purchases are not. Purchases do not include transfer payments, interest paid by Government, and subsidies. Transactions in financial assets and land are also excluded.
And Q3 GDP price index grew at 2.8%,the highest level since Q3 2011.
It is truly amazing how the unemployment and GDP numbers improved sharply just prior to the Presidential election. All the disability claims, food stamps and cell phone giveaways are apparently paying off.
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2.0% is pathetic growth. There were quarters, during the Reagan recovery when GDP growth was shooting up by 6-8%.
How? We got no money.
” How? We got no money.”
Must be that Obama money from his secret stash...
Almost a trillion in newly borrowed dollars can only buy a GDP that will be downgraded to 1.4% in a month. Wow!
Last quarter they first announced GDP growth at 1.7%, then later “corrected” the amount to 1.3%, so I’d wait till the number gets corrected, probably after the election.
Sort of like the “amazing” unemployment number, that was quickly seen for what it was, since one state hadn’t reported it’s correct #’s.
Kept that Pokulus powder dry a LOOOOOONG time.
I did notice starting in July that almost every road within fifteen miles was getting a slap-dash coating of new asphalt.