Wednesday, July 31, 2013

It's The Econoomy Stupid: GDP


The economy in the U.S. grew more than economists projected in the second quarter reflecting an unexpected pickup in inventory building as consumer spending cooled.  Growth in the previous three months was revised down.  Gross domestic product, the value of all goods and services produced, rose at a 1.7 percent annualized rate in the second quarter of the year, after a 1.1 percent gain the first quarter.  The median forecast of 85 economists surveyed by Bloomberg called for a 1 percent advance for the second quarter.  Consumer spending, the biggest part of the economy, climbed 1.8 percent after increasing 2.3 percent.  Job gains and rising home prices are shoring up Americans’ confidence and lifting automobile sales and production, making it likely the U.S. will pick up once government spending cuts and tax increases pose less of a restraint. The report also showed inflation is falling further below the Federal Reserve’s goal as officials wrap up a two-day meeting today to determine whether to trim monthly bond purchases aimed at spurring growth.


John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury



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